Technical
What is Piercing Line / Dark Cloud Cover?
Two-candle reversal prints: after a decline, a green candle opens below the prior red close but recovers to close above the midpoint of that red body (Piercing Line); Dark Cloud Cover is the bearish mirror at tops.
Formula
Piercing Line: Open < Prior Close AND Close > midpoint of prior red body (after a decline)
How to Interpret
A failed continuation β the session began confirming the trend (gapping the wrong way) and ended repudiating it. Strength scales with penetration depth: closing past the midpoint is the minimum bar; the closer to full engulfment, the stronger the print.
Typical Ranges
The open-beyond-prior-close requirement makes true prints rare outside gapping markets β nearly extinct in 24/7 crypto. Weaker than full engulfing by construction.
Find Stocks Using This Signal
Screen US and Indian stocks by Piercing Line / Dark Cloud Cover in the Technical Screener.