Pattern Overview
Description
A bearish candle opens above and closes more than halfway into the previous bullish candle.
Meaning
Found in uptrends; signals potential bearish reversal if selling continues, as buyers lose control to sellers.
What is the Dark Cloud Cover candlestick pattern?
The Dark Cloud Cover appears when a bearish candle opens above the previous bullish candle but closes over halfway into it, reflecting a shift in control from buyers to sellers. This pattern suggests that bullish momentum may be fading, hinting at a potential reversal. Dark Cloud Cover patterns reveal moments when sentiment shifts from optimism to caution.
For traders, understanding this pattern helps them anticipate reversals at the top of uptrends. The Chart Guys provide educational content that dives deeper into interpreting Dark Cloud Covers and using them as part of a broader trading strategy.
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