Bullish Stock Indices Candle Patterns & Bearish Stock Indices Candle-stick Setup Patterns
Bullish Candlestick Patterns Tutorial & Bearish Stock Indices Candle Patterns Guide
A Piercing Line Stock Indices Candle-stick Setup and Dark Cloud Stock 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 Candlesticks
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 downward 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 and 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 downward trend.
Piercing Line Candlestick
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 candlestick.
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 and market trend is likely to reverse & move in a downward 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 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 candle.
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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