Dark Cloud [TradingFinder] Piercing Line Reversal chart Pattern
🔵 Introduction
"Reversal candlestick patterns" are among the Japanese candlestick patterns considered as alerts for a potential change in the current price trend. It is often assumed that by identifying reversal candlestick patterns, the price trend will definitely change, either from bullish to bearish or from bearish to bullish. However, this claim is not entirely accurate, and a change in price trend does not always mean a reversal.
Nonetheless, the importance of reversal candlestick patterns remains significant. By recognizing these patterns, you can better predict changes in the trend with higher probability and make better trading decisions.
🔵 Dark Cloud
The "Dark Cloud" pattern occurs when, after an upward trend, buyers continue to drive the price up in the first candle. However, in the next candle, with sellers entering and increasing selling pressure, the price starts to decrease compared to the close of the previous candle.
This price decrease is significant enough that in the last candle, the price goes lower than the open of the previous candle, serving as a warning sign for a potential change in price trend.
The fundamental principles for the formation of the "Dark Cloud" pattern include :
1.Two candles consisting of a positive candle (first candle) and a negative candle (second candle) whose main body should be above the halfway point of the first candle's main body but does not completely cover it.
2.The color of the main body of the second candle should be opposite to the color of the main body of the first candle.
Factors affecting the strength of the "Dark Cloud" pattern include :
1.The length of the bodies of both candles, especially the second candle, which increases the strength of the pattern.
2.The gap between the two bodies can also indicate the strength of the pattern.
3.The absence of a lower shadow in the second candle also indicates the strength of the pattern.
4.If the pattern forms in a price resistance range, it has more strength.
🔵 Piercing Line
The "Piercing Line" pattern occurs when, after a downward trend, sellers decrease the price by offering their shares on the first day. However, on the next day, with buyers entering and increasing demand, the price starts to increase compared to the close of the previous day.
This increase is significant enough that in the last candle, the price goes higher than the open of the previous day, serving as a warning sign for a reversal in the price trend. Overall, this pattern is the opposite of the "Dark Cloud" pattern and occurs under a bearish trend.
The fundamental principles for the formation of the "Piercing Line" pattern include :
1.Two candles consisting of a negative candle (first candle) and a positive candle (second candle) whose main body should be above the halfway point of the first candle's main body but does not completely cover it.
2.The color of the main body of the second candle should be opposite to the color of the main body of the first candle.
Factors affecting the strength of the "Piercing Line" pattern include :
1.The length of the bodies of both candles, especially the second candle, which increases the strength of the pattern.
2.The gap between the two bodies can also indicate the strength of the pattern.
3.The absence of an upper shadow in the second candle also indicates the strength of the pattern.
4.If the pattern forms in a price support range, it has more strength.
🔵 How to Use
The "green circle" symbol corresponds to the "Strong Piercing Line" signal, the "blue triangle" symbol corresponds to the "Weak Piercing Line" signal, the "red circle" symbol corresponds to the "Strong Dark Cloud" signal, and the "red triangle" symbol corresponds to the "Weak Dark Cloud" signal.
🔵 Setting
Using the "Show Dark Cloud" and "Show Piercing Line" buttons, you can enable or disable the display of Dark Cloud and Piercing Line.
Darkcloudcover
MJ Important Candlestick Patterns + Smart TrendThis script detects 6 important candlestick patterns defined by the author and puts chart labels on your chart for your attention. It also includes a smart trend checking algorithm to detect trends.
The six candlestick patterns covered are:
Bullish Engulfing
Bearish Engulfing
Piercing Line
Dark Cloud Cover
Bullish Harami
Bearish Harami
*** Smart feature of this indicator is that it can detect uptrends or downtrends before alerting you regarding the bullish or bearish reversal candlestick pattern. This is achieved by comparing the typical price (high+low+close divided by 3) of today's candle versus three days ago.
DcPi for intraday tradesDcPi stands for dark cloud and piercing , This is a very reliable pattern for intraday trades.
Precondition-
Whenever a big move is followed by gap(up/down) open next day.
Trade Setup-
Wait for price to enter in previous day range.
Aggressive traders can enter trade as soon as price enters previous day range, safe traders can wait for 1st 5 minute candle close, target can be mid of previous day range.
Trailing stoploss is a good way to secure your profits.
How this indicator helps?
Whenever intraday range will be more than 5% move, chart background will turn light blue, one might add stock to watchlist for next day.
if next day is gap open, chart background will be light green, and a textbox will be displayed with entry, stoploss and targets. One might take trades as explained in trade setup.
How it is dark cloud and piercing pattern?
Green candle followed by gap up open next day and closing in previous day range is Dark cloud on daily timeframe.
Red candle followed by gap down open next day and closing in previous day range is piercing pattern on daily timeframe.
Dark Cloud Cover Pattern Trading Setupthis study is another script based on the candlestick pattern . there are a few filters implemented to be applied to the output result to clear out noises. it sounds like finding real Dark Cloud Cover instances are too rare (interesting though!).
Dark Cloud Cover
it is a bearish reversal candlestick pattern where a down candle (typically bearish) opens above the close of the prior up candle (typically bullish) and then closes below the midpoint of the up candle. The five criteria for the Dark Cloud Cover pattern are:
An existing bullish uptrend.
An up (bullish) candle within that uptrend.
A gap up on the following day.
The gap up turns into a down (bearish) candle.
The bearish candle closes below the midpoint of the previous bullish candle.
all these criteria are implemented in code to produce a more accurate result.
please provide me with your valuable comments,
thanks for your attention,
Dark Cloud Cover and Piercing Line {LucaBono}Questo candlestick pattern parla da solo! Come potete vedere dal grafico questo pattern individua i massimi e i minimi, più o meno momentanei.
Si possono effettuare svariati tipi di trade in quanto è valido per tutti i tipi di mercato e timeframe e potrebbe essere ottimo per il trading di breve termine o scalping in base al timeframe utilizzato. Si basa sul Dark Cloud Cover, un pattern ribassista che ho migliorato aggiungendo dei filtri per individuare quelli più significativi e non vi resta altro che entrare in direzione short nel caso del Dark Cloud Cover che ho impostato con una freccia verso il basso, sopra la candela, e la scritta DCCShort.
Per quanto riguarda l'ingresso long ci basiamo sul pattern Piercing Line che altro non è che l'opposto del Dark Cloud Cover. Ho inserito sul grafico una freccia verso l'alto posta sotto la candela con la scritta PLLong.
Cercalo tra gli indicatori, lascia un like se lo trovi utile e..buon trading!
Timeframe Weekly su GOLD
This candlestick pattern speaks for itself! As you can see from the graph this pattern identifies the maximum and minimum, more or less momentary.
Various types of trade can be made as it is valid for all types of markets and timeframes and could be excellent for short term trading or scalping based on the timeframe used. It is based on the Dark Cloud Cover, a bearish pattern that I improved by adding filters to identify the most significant ones and there is nothing left but to enter short in the case of the Dark Cloud Cover that I set with an arrow down, over the candle , and the word DCCShort.
As for the long entry we rely on the Piercing Line pattern which is nothing but the opposite of the Dark Cloud Cover. I placed an upward arrow on the chart under the candle with the PLLong inscription.
Look for it among the indicators, leave a like if you find it useful and ... good trading!
BEARISH Dark Cloud Cover/BULLISH PiercingThe script highlights the 2 candlesticks pattern: BEARISH Dark Cloud Cover/BULLISH Piercing on the main chart screen, and has a preset alert condition. Please use an oscillator that shows oversold and overbought conditions with this script (i.e. StochRSI oscillator).
Reversal Patterns Collection:ClowdCover and Piersing LineScript contains Dark Clowd Cover and Piersing Line patterns. User can select period for candle size calculation (for distinguish short and long candles), on/off highlighting of pattern candles.
