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1492 terms

Glossary

Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.

Showing 2 terms

Piercing line

Technical analysis

A bullish two-candle pattern in which price gaps down after a red candle and then closes back above the midpoint of that candle's body.

In plain terms

The decline accelerated at the open and was fully absorbed — buyers were waiting for the gap. Indian equities gap often because the market is shut for 17.5 hours, so check whether the whole sector gapped before reading emotion into it.

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Dark cloud cover

Technical analysis

A bearish two-candle pattern: after a green candle, price gaps up and then closes back below the midpoint of that green body.

In plain terms

Enthusiasm at the open met heavy supply, so everyone who bought the gap is already losing. The mirror of the piercing line, and subject to the same overnight-gap caveat.

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Indian stock market glossary · Market Vidyalaya