Dark Cloud Cover Candlestick Chart Pattern

Dark cloud cover candlestick pattern is a bearish reversal pattern. It is almost similar engulfing candlestick chart pattern. But the difference is here that in an engulfing pattern, the last candle will close below the first candle. But, to form a dark cloud candlestick pattern, The last candlestick will close in mid of first candle.

Direction:-- Bearish or Downtrend

Type of this pattern: reversal

Reliability on this pattern: High

If price stays in an uptrend, then after a bullish candle forming a bearish candlestick form with a gap up. If the bearish candles close below the mid point of first candlestick, you have got a dark cloud cover candlestick pattern.

It indicates that the up trend may be exhausted and a bearish move may be coming. This candlestick chart pattern gives strong trading signal to trade.

Major Factors of Dark Cloud Cover Candlestick Chart Pattern...

1. Price in a uptrend.
2. A bullish candle.
3. Gap up.
4. A bearish candle.
5. The bearish candlestick has been closed below mid point of the first bullish candlestick.
6. Finally this is Dark cloud candlestick chart pattern.