Trade Stock Indices

Bullish Stock Index Candle Patterns and Bearish Stock Index Candle-stick Setup Patterns

Bullish Candlestick Patterns Tutorial Course & Bearish Stock Index Candle Patterns Lesson

A Piercing Line Stock Index Candle-stick Setup and Dark Cloud Indices Candle Pattern look alike and similar but the difference is that one occurs at the top of a Stock Index up trend (Cloud Cover) & the other occurs at the bottom of a downward trend (Piercing).

Upward Stock Index Trend Reversal - Dark Cloud Cover Candles

Downward Indices Trend Reversal - Piercing Line Candles

Piercing Line Candlestick

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

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

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

This highlights that the strength of the down trend is decreasing & market trend is likely to reverse & move in an upward direction.

This pattern is illustrated are referred to as a piercing line signifying and signaling that the market is piercing the bottom illustrating a market floor for price downwards trend.

Piercing Line Candlestick Setup Tutorial - Piercing Line Candle Pattern

Piercing Line Candle

Analysis Piercing Line Candlestick

A buy signal gets to be confirmed once price closes above neck-line which is the opening of the candlestick on the left of the Piercing Line candle.

This is a bullish setup and price should continue moving upwards & for a trader who places a buy trade position should also place a stop loss just below the lowest price zone.

Dark Cloud Cover Candlestick

Opposite of piercing candlestick.

This candlestick is a long white body that is followed by a long black body.

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

This is a bearish market reversal trading pattern setup which forms at the top of an upwards trend.

It shows that the market opens higher & closes below mid point of the white body.

This highlights that the strength of the up trend is decreasing & market trend is likely to reverse & move in a downwards direction.

This setup is illustrated are referred to as a cloud cover signifying the cloud as a ceiling for the price upwards trend.

Dark Cloud Cover Candlestick Setup - How Do I Trade Dark Cloud Indices Candle Pattern Bearish or Bullish?

Dark Cloud Candlestick

Analysis Dark Cloud Cover Candlestick

A sell signal gets to be confirmed once price closes below the neck-line which is the opening of the candlestick on the left of this candlestick.

This is a bearish setup and 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.

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