Bullish Stock Indices Candlestick Patterns and Bearish Stock Indices Candlestick Patterns

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

A Piercing Line Indices Candlestick Pattern and Dark Cloud Cover Stock Indices Candlestick Pattern look alike but the difference is that one occurs at the top of a Indices 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

Downward Indices 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 midpoint of the prior black body.

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

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

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

Piercing Line Candlestick

Technical Analysis Piercing Line Candlestick

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.

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

Dark Cloud Cover Candlestick

Opposite of piercing candlestick.

This candlestick 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 indices pattern that forms at the top of an upward indices trend.

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

This shows that the momentum of the up indices trend is reducing and the stock indices trading market indices trend is likely to reverse and move in a downward direction.

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

Dark Cloud Cover Candlestick

Technical Analysis Dark Cloud Cover Candlestick

A sell stock indices signal is confirmed once stock indices price closes below the neckline which is the opening of the candlestick on the left of this candlestick.

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