Dark Cloud Cover

In technical analysis, Dark Cloud Cover is a candlestick pattern that indicates a momentum shift from bullish to bearish in an asset’s price.

Dark Cloud Cover patterns are composed of three candles that go as follows:

They initially start off as bullish, with a large up candle indicating a significant amount of buying.

The following candle gaps-up, taking the price even higher, but then sellers bring the price back down, causing this second candle to drop further than the half-way point of the previous one.

Finally, the third candle, also known as the confirmation candle, sees the price falling below the level of the second one.

visa mastercard paypal transfer skrill sofort giropay trustly

Open your EverFX account

It takes only a few minutes and even fewer clicks to enter the promising and exciting world of trading. Take the first step by clicking on the link below.
Trading involves significant risk of loss
Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73,74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please consider our Risk Disclosure