• Dark cloud cover is a candlestick pattern that shows a downward shift in momentum after a price rise.

  • The pattern consists of a bearish candle that opens higher but then closes below the middle of the previous bullish candle.
  • Both candles should be relatively large, showing the active participation of traders and investors. When a pattern occurs with small candles, it is usually less significant.
  • Traders usually see if a candle following a bearish one shows a decline in prices. A further decline in price after a bearish candle is called a confirmation.