CANDLESTICK PATTERN: PIERCING LINE PATTERN

The opposite of the Dark Cloud Cover, the Piercing Line, has bullish implications. The scenario is quite similar, but opposite. A downtrend is in place, the first candlestick is a long black day which solidifies traders' confidence in the downtrend. The next day, prices open at a new low and then trade higher all day and close above the midpoint of the first candlestick's body. This offers a significant change to the downtrend mentality and many will reverse or exit their positions.