Dark Cloud Cover Pattern: A Bearish Reversal Signal

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What is the Dark Cloud Cover Pattern?

The Dark Cloud Cover is a two-candle bearish reversal pattern that appears at the top of an uptrend, signalling potential weakness in bullish momentum

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First Candle – Strong Bullish Move

A large bullish candle forms, confirming strong buying pressure and continuation of the existing uptrend

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Second Candle – Bearish Shift Begins

The next candle opens above the previous close but closes deeply into the body of the first bullish candle, showing growing selling pressure

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How Reliable Is It?

The Dark Cloud Cover is considered a moderately reliable bearish reversal signal, especially when it forms near resistance levels or after a strong rally

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Confirmation & Volume

Traders usually wait for the next candle to close lower for confirmation. Higher trading volume during the second candle strengthens the bearish signal

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Dark Cloud Cover Pattern: A Bearish Reversal Signal

What is the Dark Cloud Cover Pattern? The Dark Cloud Cover is a two-candle bearish reversal pattern that appears at the top of an uptrend, signalling potential weakness in bullish momentum

First Candle – Strong Bullish Move A large bullish candle forms, confirming strong buying pressure and continuation of the existing uptrend

Second Candle – Bearish Shift BeginsThe next candle opens above the previous close but closes deeply into the body of the first bullish candle, showing growing selling pressure

How Reliable Is It?The Dark Cloud Cover is considered a moderately reliable bearish reversal signal, especially when it forms near resistance levels or after a strong rally

Confirmation & Volume Traders usually wait for the next candle to close lower for confirmation. Higher trading volume during the second candle strengthens the bearish signal