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Dark Cloud Cover

Bearish Candlestick Pattern

Tobi Frenzen
Author
Tobi Frenzen
Published
October 28, 2024
Author
Tobi Frenzen
Published
Oct 28, 2024
Dark Cloud Cover Candlestick Pattern
Dark Cloud Cover - Bearish Double Candlestick Pattern

Pattern Details

Dark Cloud Cover

Bias

Bearish

Type

Double Candlestick Pattern

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 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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