Dark Cloud Cover

What is the 'Dark Cloud Cover'

The Dark Cloud Cover, in candlestick charting, is a pattern where a black candlestick follows a long white candlestick. It can be an indication of a future bearish trend.

Dark Cloud Cover

BREAKING DOWN 'Dark Cloud Cover'

Essentially, the large black candle is forming a "dark cloud" over the preceding bullish trend.

The dark cloud must have a closing price that is:
1) within the price range of the previous day, but
2) below the mid-point between open and closing prices of the previous day.

RELATED TERMS
  1. Bullish Engulfing Pattern

    A chart pattern that forms when a small black candlestick is ...
  2. Bearish Harami

    A trend indicated by a large candlestick followed by a much smaller ...
  3. Bullish Belt Hold

    A trend in candlestick charting that occurs during a downward ...
  4. Bearish Belt Hold

    A candlestick pattern that forms during an upward trend. This ...
  5. Bullish Harami

    A candlestick chart pattern in which a large candlestick is followed ...
  6. Rising Three Methods

    A bullish candlestick pattern that is used to predict the continuation ...
Related Articles
  1. Active Trading

    Star Formations Spotlight Luminary Trades

    Morning, evening and doji stars will have you basking in better trading profits.
  2. Technical Indicators

    Using Bullish Candlestick Patterns To Buy Stocks

    These five popular candlestick chart patterns signal a bullish reversal in downtrend.
  3. Charts & Patterns

    Candlestick Charting: What Is It?

    Discover the components and basic patterns of this ancient technical analysis technique.
  4. Charts & Patterns

    The 5 Most Powerful Candlestick Patterns (NUAN, GMCR)

    Statistics show unusual accuracy for the buy and sell signals of certain candlestick patterns like abandoned baby, evening star, and three black crows.
  5. Forex Education

    Candlestick Charting: Perfecting The Art

    Take a look at continuation patterns and how they can confirm or deny trends.
  6. Active Trading

    Candlesticks And Oscillators For Successful Swing Trades

    Take advantage of short-term price moves by pinpointing reversals.
  7. Technical Indicators

    Understanding the "Hanging Man": The Optimistic Candlestick Pattern

    A hanging man is a candlestick pattern that hints at the reversal of an uptrend. The candlestick is recognizable by a small box atop a long, narrow "shadow."
  8. Charts & Patterns

    Advanced Candlestick Patterns

    Go beyond the basics! Learn to identify and trade island reversals, kicker patterns and more.
  9. Technical Indicators

    Swing Trading With Ichimoku Clouds

    Ichimoku Clouds offer complex market analysis in a single visual image that addresses price, trend and momentum.
  10. Investing

    Should You Wade Into The Dark Pools Of Liquidity?

    Dark pools of liquidity allow big investors to trade away from the public eye. They limit market impact but may leave small investors in the cold.
RELATED FAQS
  1. Why is the Dark Cloud Cover pattern important for traders?

    Learn the significance for traders of the dark cloud cover candlestick pattern, a bearish indicator closely related to the ... Read Answer >>
  2. How do I create a trading strategy after spotting a Dark Cloud Cover pattern?

    Devise a trading strategy to take advantage of the dark cloud cover candlestick pattern, a bearish indicator that may signal ... Read Answer >>
  3. How do I implement a forex strategy when spotting a Rising Three Methods Pattern?

    Learn how to implement a forex trading strategy designed to profit from a trend continuation signal given by the rising three ... Read Answer >>
  4. Are continuation patterns most useful when looking at Candlesticks?

    Learn the basics of using candlesticks to confirm continuation or reversal patterns and the vital role this plays in establishing ... Read Answer >>
  5. How do I build a profitable strategy when spotting a Three Black Crows pattern?

    Learn to identify the three black crows candlestick pattern and learn how stock market traders use the pattern to profit ... Read Answer >>
  6. How do I implement a forex strategy when spotting a Three Black Crows Pattern?

    Learn a common forex trading strategy traders use to capitalize on the bearish market reversal signal given by the three ... Read Answer >>
Hot Definitions
  1. Reverse Mortgage

    A type of mortgage in which a homeowner can borrow money against the value of his or her home. No repayment of the mortgage ...
  2. Labor Market

    The labor market refers to the supply and demand for labor, in which employees provide the supply and employers the demand. ...
  3. Demand Curve

    The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity ...
  4. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  5. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  6. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
Trading Center