Dark Cloud Cover Bearish

S c r o l l D o w n

Dark Cloud Cover Bearish

Pattern: Reversal
Trend: Bearish
Reliability: High
How to Identify it
· First day is a long white day
· Second day is black with an open above the high of the previous day
· Second day closes within but below the midpoint of the first day’s body

What it Means
In an uptrend the market gaps open, but loses ground to fall below the midpoint of the previous day. The Dark Cloud Cover pattern suggests an opportunity for the shorts to capitalize on the next day’s open: a warning sign to bullish investors. The Dark Cloud Cover pattern is the opposite of the Piercing line pattern.

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