Piercing Line Bullish Gold Candles Pattern

Piercing Line Bullish XAUUSD Candle Patterns

A Piercing Line XAUUSD Candlesticks Pattern & Dark Cloud Cover Candles Pattern look alike but the difference is that one occurs at the top of a Gold Trading up 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 Candles Patterns

Piercing Line XAUUSD Candle Pattern

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

The white body pierces the mid point of the prior black body.

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

Piercing line candlestick pattern shows that the momentum of the down gold trend is reducing & the gold trend is likely to reverse & move in an upwards 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 bottoms showing a market floor for the xauusd price downwards trading trend.

Piercing Line XAUUSD Candle Pattern

Technical Analysis Piercing Line Gold Candlesticks Pattern

A buy signal is confirmed once xauusd price closes above the neck-line which is the opening of the candlestick on the left of the Piercing Line candle pattern.

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