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.
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.
What is dark cloud cover piercing pattern?
It is a reversal bearish structure as well. The opposite of dark cloud cover is the piercing pattern that appears at the end of a downtrend. Moreover, a piercing pattern requires taller candles (volume) to reverse the direction. How to Trade Dark Cloud Cover?
What is dark cloud cover reversal pattern?
Dark Cloud Cover is a bearish reversal candlestick pattern where a down candle (typically black or red) opens above the close of the prior up candle (typically white or green), and then closes below the midpoint of the up candle. The pattern is significant as it shows a shift in the momentum from the upside to the downside.
