CANDLESTICK PATTERN: Dark Cloud Cover

What is the 'Dark Cloud Cover'

The Dark Cloud Cover is a bearish reversal candlestick pattern whereby a black candlestick opens above a white candlestick's close and below its midpoint.

The Dark Cloud Cover pattern involves a large black candle forming a "dark cloud" over the preceding bullish trend. As with a bearish engulfing pattern, bulls push the price higher at the open, but bears take over later in the session and push the price sharply lower. The "takeover" of the trend is a sign that there could be a near-term bearish reversal.

The five criteria for the Dark Cloud Cover pattern are:

1. An existing bullish uptrend.
2. A bullish candle within that uptrend.
3. A gap up on the following day.
4. The gap up turns into a bearish candle.
5. The bearish candle closes below the midpoint of the previous bullish candle.

LINK:

https://www.investopedia.com/terms/d/darkcloud.asp