Piercing Line Candlestick Pattern

Piercing Line Bullish Candle Setups

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

Upward Trend Reversal - Dark Cloud Cover Candlesticks

Downward Trend Reversal - Piercing Line Candlesticks

Piercing Line Candlestick

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

White body pierces the mid point of the prior black body.

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

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

This pattern is displayed known as a piercing line signifying the market is piercing the bottom showing a market floor for the price downward trend.

Piercing Line Candlestick

Analysis Piercing Line Candlestick

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

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

Dark Cloud Cover Candlestick

Opposite of piercing candlestick.

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

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

This is a bearish reversal energies setup which forms at the tops of an upwards trend.

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

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

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

Dark Cloud Cover Candlestick

Analysis Dark Cloud Cover Candlestick

A sell signal is confirmed once price closes below the neckline which is the opening of the candlestick on the left of this candlestick.

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