Bullish Stock Indices Candle Patterns & Bearish Stock Indices Candle Patterns
Bullish Indices Candle Patterns Tutorial and Bearish Stock Indices Candle Patterns Guide
A Piercing Line Indices Candlestick Pattern and Dark Cloud Cover Stock Indices Candle Pattern look alike but the difference is that one occurs at the top of a Indices up indices trend (Cloud Cover) and the other occurs at the bottom of a downwards indices trend (Piercing).
Upward Indices Trend Reversal - Dark Cloud Cover Candlesticks
Downward Indices 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 mid point of the prior black body.
This is a bullish reversal indices pattern that forms at the bottom of a market downwards indices trend. It shows that the stock indices trading market opens lower & closes above midpoint of the black body.
This shows that the momentum of the down indices trend is reducing & stock indices trading market indices trend is likely to reverse & move in an upwards direction.
This indices pattern is shown known as a piercing line signifying the stock indices trading market is piercing the bottoms showing a market floor for stock indices price downward trend.
Piercing Line Candle
Technical Analysis Piercing Line Candle
A buy stock indices signal is confirmed once stock indices trading price closes above neck line which is the opening of the candle on the left of the Piercing Line candlestick.
This is a bullish setup and stock indices trading price should continue moving upwards and for a trader who puts a buy indices trade should also place a stop loss order just below the lowest stock indices trading price zone.
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 indices pattern which forms at the top of an upward indices trend.
It shows that the stock indices trading market opens higher & closes below midpoint of the white body.
This shows that the momentum of the up indices trend is reducing & stock indices trading market indices trend is likely to reverse & move in a downwards direction.
This indices pattern is shown known as a cloud cover signifying the cloud as a ceiling for the stock indices price upwards trend.
Dark Cloud Cover Candle
Technical Analysis Dark Cloud Cover Candle
A sell stock indices signal is confirmed once stock indices trading price closes below the neck-line which is the opening of the candle on the left of this candle.
This is a bearish setup and stock indices trading price should continue moving downwards and for a trader who puts a sell indices trade should also put a stop-loss order just above highest stock indices trading price zone.
