Dark Cloud Candle Stick
During an uptrend, the first candlestick is a long white one. The second candlestick is black with an open above the high of the previous candlestick and close within but below the pivot point of the first candlestick's body. Dark Cloud Cover is a bearish reversal candlestick pattern that is formed at the end of an uptrend.
The Dark Cloud Cover pattern suggests an opportunity for the shorts to capitalize on the next candlestick's open.
It is a warning sign for bullish investors.
The greater the penetration of the first candlestick by the second and the higher the volume is on the second candle, the more significant this pattern is.
A Dark Cloud pattern encountered after an up-trend is a reversal signal, warning of "rainy days" ahead.
