Bullish Stock Indices Candlestick Patterns and Bearish Stock Indices Candle-stick Setup Patterns
Bullish Candle Patterns Tutorial and Bearish Stock Indices Candlestick Patterns Guide
A Piercing Line Indices Candle-stick Setup and Dark Cloud Cover Stock Indices Candle Pattern look alike but the difference is that one occurs at the top of a Indices up trend (Cloud Cover) & the other occurs at the bottom of a downwards trend (Piercing).
Upward Indices Trend Reversal - Dark Cloud Cover Candles
Downward Indices 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 midpoint of the previous black body.
This is a bullish reversal pattern setup that forms at the bottom of a market downward trend. It shows that the market opens lower and closes above midpoint of the black body.
This highlights that the momentum of the down trend is reducing & market trend is likely to reverse & move in an upward direction.
This pattern is shown known as a piercing line signifying the market is piercing the bottom illustrating a market floor for price down ward trend.
Piercing Line Candlestick
Analysis Piercing Line Candle
A buy signal is confirmed once price closes above neck line which is the opening of the candle on the left of the Piercing Line candlestick.
This is a bullish setup & price should continue moving upwards & for a trader who puts a buy trade should also place a stop loss order just below the lowest price zone.
Dark Cloud Cover Candlestick
Opposite of piercing candlestick.
This candle is a long white body followed by a long black body.
The black body pierces the mid point of the prior white body.
This is a bearish reversal pattern setup which forms at the top of an upward trend.
It shows that the market opens higher & closes below mid point of the white body.
This highlights that the momentum of the up trend is reducing & market trend is likely to reverse and move in a downward direction.
This setup 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 Candlestick
A sell signal is confirmed once 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 trading price should continue moving downward & for a trader who puts a sell trade should also put a stop loss order just above highest price zone.
Study More Courses:
- Learn How to Trade NKY225 Stock Index Course Tutorial
- Download Indices Trading MetaTrader 5 for Android
- Stock Indices Trading Web Indices Trading in MT5 Webtrader
- How to Add SMI20 in MT4 Android App
- How to Add SPX in MT4 iPhone Trade App
- SWI 20 Strategies How to Make Strategies for SWI20 Course
- 1 Hour Day Trading Indices Strategy
- What is The SX5E Index in Trading?
- Stock Index JP225 in FX Trading