Piercing Line Candlestick Pattern

Piercing Line Bullish Candlestick Setups

A Piercing Line Candle Pattern & Dark Cloud Cover Commodities Candle Pattern look alike but the difference is that one occurs at the top of a Commodity Trading up trend (Cloud Cover) and the other occurs at the bottom of a downwards trend (Piercing).

Upward Trend Reversal - Dark Cloud Cover Candles

Downward Trend Reversal - Piercing Line Candlesticks

Piercing Line Candlestick

Piercing line is a long black body followed by a long white body candlestick.

The white body pierces the mid point of the prior black body.

This is a bullish reversal pattern setup that forms at the bottom of a market downwards commodities trend. It shows that the commodity market opens lower and closes above the midpoint of the black body.

This portrays that the momentum of the down commodity trend is reducing and market trend is likely to reverse and move in an upwards direction.

This pattern is shown referred to as a piercing line signifying the commodity market is piercing the bottoms showing a market floor for the price downward trend.

Piercing Line Candle

Analysis Piercing Line Candlestick

A buy signal is confirmed once price closes above the neckline this is the opening of the candle on the left of the Piercing Line candle.

This is a bullish setup and commodities price should continue moving upwards and for a trader who puts a buy trade should also place a stop loss order just below the lowest commodities price level.

Dark Cloud Cover Candlestick

Opposite of piercing candle.

This candle is a long white body followed by a long black body.

Black body pierces the midpoint of the prior white body.

This is a bearish reversal pattern setup which forms at the top of an upward commodities trend.

It shows that the commodity market opens higher and closes below the midpoint of the white body.

This portrays that the momentum of the up trend is reducing and market trend is likely to reverse and move in a down ward direction.

This pattern is shown known as a cloud cover signifying the cloud as a ceiling for the price upward trend.

Dark Cloud Cover Candle

Analysis Dark Cloud Cover Candle

A sell signal is confirmed once price closes below neck-line which is the opening of the candle on the left of this candle.

This is a bearish setup and commodities price should continue moving downward and for a trader who puts a sell trade should also put a stop loss order just above the highest commodities price level.