Piercing Line Gold Candlestick Pattern

Piercing Line Bullish XAUUSD Candlestick Patterns

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

Upward Gold Trend Reversal - Dark Cloud Cover Candlesticks

Downward Gold 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 midpoint of the prior black body.

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

This shows that the momentum of the down gold trend is reducing and the xauusd market trend is likely to reverse and move in an upward direction.

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

Piercing Line Candlestick

Technical Analysis Piercing Line Candlestick

A buy gold signal is confirmed once xauusd 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 xauusd price should continue moving upwards and for a gold trader who puts a buy gold trade should also place a stop loss gold order just below the lowest xauusd 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 midpoint of the prior white body.

This is a bearish reversal gold pattern that forms at the top of an upward xauusd trend.

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

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

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

Dark Cloud Cover Candlestick

Technical Analysis Dark Cloud Cover Candlestick

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

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