This candlestick pattern is similar to the piercing pattern. The only difference is that piercing pattern occurs at the end of the downtrend, whereas dark cloud cover occurs at the end of an uptrend. What is a Dark Cloud Cover? How do I identify a dark cloud cover candlestick pattern? Is dark cloud cover a bearish candlestick?
What is dark cloud cover?
Dark Cloud Cover is a candlestick pattern that shows a shift in momentum to the downside following a price rise. The pattern is composed of a bearish candle that opens above but then closes below the midpoint of the prior bullish candle. Both candles should be relatively large, showing strong participation by traders and investors.
What is the difference between dark cloud cover and piercing pattern?
The only difference is that piercing pattern occurs at the end of the downtrend, whereas dark cloud cover occurs at the end of an uptrend. What is a Dark Cloud Cover? How do I identify a dark cloud cover candlestick pattern? Is dark cloud cover a bearish candlestick? How to trade using dark cloud cover pattern? What is a Dark Cloud Cover?
Is there a profit target for a dark cloud cover pattern?
There is no profit target for a Dark Cloud Cover pattern. Traders utilize other methods or candlestick patterns for determining when to exit a short trade based on Dark Cloud Cover. Traders may use the Dark Cloud Cover pattern in conjunction with other forms of technical analysis.
