Piercing Line Stock Candle Pattern

Piercing Line Bullish Stock Candle Patterns

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

Upward Stock Trend Reversal - Dark Cloud Cover Candlesticks

Downward Stock Trend Reversal - Piercing Line Candles

Piercing Line Candlestick

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

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

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

This shows that the momentum of the down stock trend is reducing & the stocks market trend is likely to reverse & move in an upward direction.

This stock trading pattern is shown referred to as a piercing line signifying the stocks market is piercing the bottoms showing a market floor for the stock price downward trend.

Piercing Line Candle

Technical Analysis Piercing Line Candlestick

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

This is a bullish setup and stocks price should continue moving upwards and for a trader who puts a buy stock trade should also place a stop loss stock order just below the lowest stock trading price zone.

Dark Cloud Cover Candlestick

Opposite of piercing candlestick.

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 stock pattern which forms at the top of an upwards stocks trend.

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

This shows that the momentum of the up stock trend is reducing & the stocks market trend is likely to reverse and move in a downwards direction.

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

Dark Cloud Cover Candle

Technical Analysis Dark Cloud Cover Candle

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

This is a bearish setup and stocks price should continue moving downwards and for a trader who puts a sell stock trade should also put a stop-loss stock order just above the highest stock trading price zone.