Dark Cloud Cover

Dictionary Says

Definition of 'Dark Cloud Cover'

In candlestick charting, a pattern where a black candlestick follows a long white candlestick. It can be an indication of a future bearish trend.

Dark Cloud Cover
Investopedia Says

Investopedia explains '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.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Bear

    An investor who ...
  2. Candlestick

    A chart that ...
  3. Technical Analysis

    A method of ...
  4. Risk

    The chance that ...
  5. Universe Of Securities

    A set of ...
  6. Arithmetic Mean

    A mathematical ...
  7. Fundamental Analysis

    A method of ...
  8. Moving Average - MA

    An indicator ...
  9. Moving Average Chart

    A tool used by ...
  10. Dilution

    A reduction in ...

Articles Of Interest

  1. Simple Moving Averages Make Trends Stand Out

    The moving average is easy to calculate and, once plotted on a chart, is a powerful visual trend-spotting tool.
  2. Weighted Moving Averages: The Basics

    We take a closer look at the linearly weighted moving average and the exponentially smoothed moving average.
  3. Support & Resistance Basics

    Understanding this key concept can drastically improve your short-term investing strategy.
  4. An Introduction To Oscillators

    Find out how this indicator may help improve the average investor's entry and exit points.
  5. An Introduction To The Relative Strength Index

    Learn the difference between relative strength and the relative strength index, a frequently used technical analysis oscillator.
  6. Tips For Controlling Investment Losses

    A profit/loss plan helps investors recognize mistakes and invest logically, rather than emotionally.
  7. Triple Screen Trading System - Part 4

    How can a trader use the Elder-Ray oscillator as the second screen of this system? Find out here.
  8. Triple Screen Trading System - Part 3

    Learn about market wave, the second screen in this three-part system.
  9. Triple Screen Trading System - Part 2

    Market tide is the basis for making trading decisions in this three-part system.
  10. Triple Screen Trading System - Part 1

    Learn to take advantage of both trend-following and oscillator techniques to analyze your trading decisions.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center