What is the dark cloud cover pattern?
The dark cloud cover is a bearish candlestick pattern. A green candle, then a red one opening above it and closing back below its midpoint.
How does the dark cloud cover form?
A long green bar, then a bar that opens above its high and closes back below the midpoint of that green body.
How do you confirm a dark cloud cover?
The bar has to open above the prior high. Opening inside the previous range is an ordinary red bar, whatever it closes at.
When does the dark cloud cover fail?
A gap up that fills is common at the open of a session; without real supply behind it the pattern completes on the chart and nothing follows.
No chart pattern works every time. The examples on this page were chosen because they show the pattern clearly, and in real markets patterns fail often.
Practice on real charts
3 real examples of the dark cloud cover, cut off where the pattern completed. Make your call, then see what happened.
The shaded area is a dark cloud cover. Where did price go next?
