What is a dark cloud cover candlestick pattern?

The Dark Cloud Cover is a reversal tradingpattern that can indicate a possible bearish trend. The pattern shows a change in momentum from upside to downside. You can identify a dark cloud cover candlestick pattern when a large black candle forms a “dark cloud” over the previous day’s candle.

What is a dark cloud cover?

The dark cloud cover refers to a candlestick pattern that serves as a bear signal, which indicates that a persisting uptrend may reverse into an upcoming downtrend. Candlestick charts are price charts that are prevalent within technical analysis. They display the high, low, open, and closing prices of a given security over a period of time.

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.

What is dark cloud cover piercing pattern?

It is a reversal bearish structure as well. The opposite of dark cloud cover is the piercing pattern that appears at the end of a downtrend. Moreover, a piercing pattern requires taller candles (volume) to reverse the direction. How to Trade Dark Cloud Cover?