Dark Cloud Cover Candlestick Pattern
Date: 04-Nov-2026
The Dark Cloud Cover is a two-candle bearish reversal pattern in technical analysis. It indicates that buyers are losing control and sellers may be taking over. It generally appears after an uptrend or a significant price rise and signals a possible downward reversal.
Criteria to find right Dark Cloud Cover:
It can be formed anyplace in the candlesticks chart. But we need to focus only on those Dark Cloud Cover which are following following criteria:
- Dark Cloud Cover should be formed after 5- or more uptrend candles or at least 15% up
- First candle would be green
- Second candle would be red
- Second candle(green) should be open with gap-up
- Second candle (green) cover over the 50% body of the first(red) candle
- There is require a confirmation candlestick. Confirmation candle should be closed below the second candle closed
- Confirmation candlestick can be red or green. color doesn’t matter
- Sell should be closed price of the next candle (Confirmation) or little up- depend on the loss capacity
- Stop loss would be apply above the higher wick of first two candlestick
- Set Stoploss once confirmation candlestick closed
Disclaimer: The information provided here is for educational and informational purposes only and should not be construed as financial, investment, or legal advice. Always do your own research and consult with a SEBI-registered financial advisor before making any investment decisions. Investments in the financial markets are subject to risks, including the risk of loss of principal.
Leave a Reply