Bullish Stock Indices Candle Patterns & Bearish Stock Indices Candle-stick Setup Patterns

Bullish Candle Patterns Tutorial and Bearish Stock Indices Candle 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) and the other occurs at the bottom of a downwards 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 mid point of the prior black body.

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

This highlights that the momentum of the down trend is reducing and market trend is likely to reverse and move in an upwards direction.

This pattern is shown known as a piercing line signifying the trading market is piercing the bottoms showing a market floor for price down ward trend.

Piercing Line Candle

Analysis Piercing Line Candle

A buy signal is confirmed once trading 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 and 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 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 pattern which forms at the top of an upward trend.

It shows that the trading market opens higher & closes below midpoint of the white body.

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

This pattern 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 Candle

A sell signal is confirmed once trading 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.