Piercing Line Bullish Gold Candlesticks Pattern

Piercing Line Bullish XAUUSD Candlestick Patterns

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

Upward Gold Trend Reversal - Dark Cloud Cover Candlesticks Patterns

Downward Gold Trend Reversal - Piercing Line Candlesticks Patterns

Piercing Line XAUUSD Candlestick Pattern

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

The white body pierces the midpoint of the prior black body.

Piercing line candlestick pattern is a bullish reversal gold pattern that forms at the bottom of a gold market downward trend. Piercing line candlestick pattern shows that the xauusd market opens lower and closes above the midpoint of the black body.

Piercing line candlestick pattern shows that the momentum of the down gold trend is reducing and the gold trend is likely to reverse and move in an upward direction.

Piercing line candlestick pattern is shown below and it is known as a piercing line because it signifies that the xauusd market is piercing the bottom showing a market floor for the xauusd price downward trend.

Piercing Line XAUUSD Candlestick Pattern

Technical Analysis Piercing Line Gold Candlesticks Pattern

A buy gold signal is confirmed once xauusd price closes above the neckline which is the opening of the candlestick on the left of the Piercing Line candlestick pattern.

This is a bullish gold candlestick pattern setup and xauusd price should continue moving upwards and for a gold trader who puts a buy gold trade - should place stop loss gold orders just below the lowest xauusd price level.