Courses / Candlestick Patterns Masterclass

Piercing Line and Dark Cloud Cover

Two candle patterns where the second candle closes beyond the midpoint of the first.

A piercing line follows a bearish candle: the next candle opens lower but closes above the midpoint of the previous body. A dark cloud cover is the reverse after a bullish candle.

They are less powerful than an engulfing pattern because the body is not fully covered.

Use them at support or resistance and require a follow-through candle.

Key takeaways

• Second candle closes past the midpoint of the first
• Weaker than engulfing
• Needs follow-through

Quiz

• A piercing line closes: Answer: Above the midpoint of the prior bearish body. It closes beyond 50% of the prior body.
• Dark cloud cover forms after: Answer: A bullish candle. It is the bearish counterpart.
• Compared to engulfing, these patterns are: Answer: Weaker. The body is not fully engulfed.

Educational content, not financial advice.