Reversal Stock Indices Candlestick Patterns - Piercing Line Indices Candlestick Pattern

Bullish Stock Indices Candlestick Patterns Tutorial and Bearish Stock Indices Candlestick Patterns Tutorial

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

Upward Indices Trend Reversal - Dark Cloud Cover Candlesticks Patterns

Downward Indices Trend Reversal - Piercing Line Candlesticks Patterns

Piercing Line Indices Candlestick Pattern

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

The white body pierces the midpoint of the prior black body.

Piercing line candlestick pattern is a bullish reversal indices pattern that forms at the bottom of a stock indices market downward indices trend. Piercing line candlestick pattern shows that the stock indices trading market opens lower and closes above the midpoint of the black body.

Piercing line candlestick pattern shows that the momentum of the down indices trend is reducing and the indices trend is likely to reverse and move in an upward direction.

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

Piercing Line Indices Candlestick Pattern

Technical Analysis Piercing Line Indices Candlesticks Pattern

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

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