Piercing Line                         Dark Cloud Cover                                                          

 Piercing Line Identification

1.  The first candle is large and black. It is confirmed when it is part of an established down trend.
2.  The second candle is white, with a body height "equal" to the first candle.

Dark Cloud Cover Identification

1.  The first candle is large and white. It is confirmed when it is part of an established up trend.
2.  The second candle is black, with a body height "equal" to the first candle.

Reversal Detection

The Piercing Line and Dark Cloud Cover candlestick patterns are both used to detect a trend reversal. By incorporating these pattern recognition features into a robot the following trade signals may be created.

Buy Signals

A buy signal is created when the Piecing Line candlestick pattern is formed. An optional confirmation parameter using the stochastic indicator may be used to assist in determining when the market is oversold.

Sell Signals

A sell signal is created when a Dark Cloud Cover candlestick pattern is formed. An optional confirmation parameter using the stochastic indicator may be used to assist in determining when the market is overbought.

Candlestick Colors

The traditional candlestick colors of White = "Up" and Black = "Down" are used.

Candlestick Pattern Recognition

This robot was created using the FxCandles Library included with FxSpyder's Autotrading Object Model. The Object Model is explained in detail with complete references in FxSpyder's Help Section from within the trading application, script editor and backtester.

Customization

This robot is available for customization via Help Desk requests.

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