Piercing Line Candlestick Patterns - Piercing Line Bullish Candles Pattern

Piercing Line Bullish Candlestick Patterns - Bullish Candles Patterns

A Piercing Line Candlesticks Pattern & Dark Cloud Cover Candles Pattern look alike but the difference is that one occurs at the top of a Forex uptrend (Cloud Cover) and the other occurs at the bottom of a downwards Forex trend (Piercing).

Upward Forex Trend Reversal - Dark Cloud Cover Candles Patterns

Downward Forex Trend Reversal - Piercing Line Candlesticks Patterns

Piercing Line Candlestick Pattern

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

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

Piercing line candle pattern is a bullish reversal pattern that occurs at the bottom of a forex market downtrend. Piercing line candlestick pattern shows that the market opens lower & closes above the midpoint of the black body.

Piercing line candle pattern shows that the momentum of the forex downtrend is reducing and the forex trend is likely to reverse & move in an upwards direction.

Piercing line candle pattern is shown below and it is known as a piercing line because it signifies that the forex market is piercing the bottom showing a market floor for the forex price downward trend.

Piercing Line Candle Pattern

Technical Analysis Piercing Line Candlesticks Pattern

A buy signal is confirmed once forex price closes above the neck-line which is the opening of the candlestick on the left of the Piercing Line candle pattern.

This is a bullish candlestick pattern setup and forex price should continue moving upwards and for a trader who puts a buy forex trade - should place stop loss orders just below the lowest price level.