Piercing Line Candle Pattern

Piercing Line Bullish XAUUSD Candle-stick Pattern Setups

A Piercing Line Candle Pattern and Dark Cloud Cover Candle-stick Pattern look alike but the difference is that one occurs at the top of a 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 Candle

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

The white body pierces the mid-point of previous black body.

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

This highlights 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 shown referred to as a piercing line signifying the market is piercing the bottom illustrating a market floor for the price down ward trend.

Piercing Line Candle

Analysis Piercing Line Candle

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

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

Dark Cloud Cover Candle

Opposite of piercing candle.

This candlestick 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 that forms at the top of an upwards xauusd trend.

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

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

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

Dark Cloud Cover Candle

Analysis Dark Cloud Cover Candle

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

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