Dark Cloud Cover Candlestick Pattern

Piercing Line Bullish Crude Candlestick Patterns

A Piercing Line Candle Setup and Dark Cloud Cover Crude Candle Setup look alike but the difference is that one occurs at the top of a Oil 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 oil setup that occurs at the bottom of a market downwards trend. It shows that the market opens lower & closes above the midpoint of the black body.

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

This pattern is shown known as a piercing line signifying the market is piercing the bottom showing a market floor for the price downwards trading trend.

Piercing Line Candle

Technical 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 price should continue moving up-wards and for one 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 candle.

This candle 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 oil setup which forms at the tops of an up-wards trend.

It shows that the market opens higher & 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 & move in a downwards direction.

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

Dark Cloud Cover Candle

Technical 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 price should continue moving down-wards and for one who puts a sell trade should also put a stop loss order just above the highest price level.