Piercing Line Energies Candlestick Pattern

Piercing Line Bullish Energy Candlestick Patterns

A Piercing Line Energies Trading Candle Pattern and Dark Cloud Cover Candle Pattern look alike but the difference is that one occurs at the top of a Energies Trading up trend (Cloud Cover) and the other occurs at the bottom of a downwards energies trend (Piercing).

Upward Energies Trend Reversal - Dark Cloud Cover Candlesticks

Downward Energies Trend Reversal - Piercing Line Candlesticks

Piercing Line Candlestick

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

White body pierces the mid point of the prior black body.

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

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

This energies pattern is displayed known as a piercing line signifying the energies market is piercing the bottom showing a market floor for the energies price downward trend.

Piercing Line Candlestick

Technical Analysis Piercing Line Candlestick

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

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 mid point of the prior white body.

This is a bearish reversal energies pattern which forms at the tops of an upwards energies trend.

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

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

This energies pattern is shown known as a cloud cover signifying the cloud as a ceiling for the energies price upwards trend.

Dark Cloud Cover Candlestick

Technical Analysis Dark Cloud Cover Candlestick

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

This is a bearish setup and energies price should continue moving downwards and for a trader who puts a sell energies trade should also put a stoploss order just above the highest energies price level.