What is a dark cloud cover candlestick pattern?

The Dark Cloud Cover is a reversal tradingpattern that can indicate a possible bearish trend. The pattern shows a change in momentum from upside to downside. You can identify a dark cloud cover candlestick pattern when a large black candle forms a “dark cloud” over the previous day’s candle.

What is dark cloud cover?

Dark Cloud Cover is a candlestick pattern that shows a shift in momentum to the downside following a price rise. The pattern is composed of a bearish candle that opens above but then closes below the midpoint of the prior bullish candle. Both candles should be relatively large, showing strong participation by traders and investors.

Is there a profit target for a dark cloud cover pattern?

There is no profit target for a Dark Cloud Cover pattern. Traders utilize other methods or candlestick patterns for determining when to exit a short trade based on Dark Cloud Cover. Traders may use the Dark Cloud Cover pattern in conjunction with other forms of technical analysis.

Is the dark cloud cover pattern bullish?

Also of interest, the bullish equivalent of the Dark Cloud Cover Pattern is the Piercing Pattern. Regulated Brokers: Where Can I Trade Commodities? Start your research with reviews of these regulated brokers available in .