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Piercing Line Candlesticks and Dark Cloud Cover candlesticks

Dark Cloud Cover Bearish Stocks Candlestick Patterns


A Piercing Line Stock Candlestick Pattern and Dark Cloud Cover Stocks Candlestick Pattern look alike but the difference is that one occurs at the top of a Stock up stock trend (Cloud Cover) and the other occurs at the bottom of a downwards stock trend (Piercing).


Upward Stock Trend Reversal - Dark Cloud Cover Candlesticks


Downward Stock 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 stock trading pattern that forms at the bottom of a market downward stocks trend. It shows that the stocks trading market opens lower and closes above the midpoint of the black body.


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


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


Piercing Line candlestick Pattern

Piercing Line Candlestick


Technical Analysis Piercing Line Candlestick

A buy stock signal is confirmed once stocks 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 stocks price should continue moving upwards and for a stock trader who puts a buy stock trade should also place a stop loss stock trading order just below the lowest stocks price level.


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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 stock trading pattern that forms at the top of an upward stocks trend.


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


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


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



Dark Cloud Cover candlestick Pattern


Dark Cloud Cover Candlestick



Technical Analysis Dark Cloud Cover Candlestick

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


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

 

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