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) 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 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 Candle

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 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 market opens higher & closes below midpoint 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 pattern is shown known as a cloud cover signifying the cloud as a ceiling for the price upward trend.

Dark Cloud Cover Candle

Analysis Dark Cloud Cover Candle

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.