|Dark Cloud and Piercing Line (Candlestick Reversal Pattern)
|The Piercing Line is a bullish reversal in a downtrend. During this trend a long black day develops following which price opens below the low of the black day and rallies to form a long white day. The close of the white day will be below the close of the black day but above the mid point.
The pattern suggests that the underlying bearishness may be overdone and a further move higher to breach the high of the white day will confirm further gains.
A Dark Cloud is the opposite of the Piercing Line. During an uptrend a long white day develops. The following day's open will be above the high of the white day and price then declines in a long black day to close above the white day's close but below the mid price.
The pattern suggests that the underlying bullishness may be overdone and a further move lower to breach the low of the black day will confirm further losses.