2026-01-19 15:37:40

Dark Cloud Cover - Bearish Reversal Signal

At the top of an uptrend, Dark Cloud Cover is a classic technical pattern. It consists of two candlesticks: first a strong bullish (upward) candle, followed by a bearish (downward) candle. The opening price of this bearish candle is at or above the previous bullish candle's close but closes below the midpoint of the previous candle in a strong decline.

This pattern typically indicates the exhaustion of upward momentum. When you see this movement on a chart, it often means that the bullish strength is waning and the bears are starting to take control. Traders commonly use it as a potential reversal or pullback signal. Recognizing this pattern with technical analysis tools can help develop more precise trading strategies.

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ForumLurker

· 16h ago

I've seen many black clouds covering the sky, but the key still depends on the trading volume. Relying solely on candlestick patterns can easily lead to being trapped.

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ConfusedWhale

· 16h ago

Here come the dark clouds again, every time claiming a reversal, but the market continues to rally...

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FUDwatcher

· 16h ago

Same old story, after a bullish candle, a bearish candle follows and you have to run? I've seen this signal fail so many times.

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GasFeeTherapist

· 16h ago

It's another dark cloud overhead. Every time they say there's a reversal, but what's the result? I'm thinking this thing depends on trading volume; otherwise, just looking at the pattern could lead to a lot of losses.

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