2-candle pattern · bearish bias
Dark Cloud Cover candlestick pattern
Dark cloud cover is a green candle followed by a red candle that opens above the green close and closes below the midpoint of the green body. Sellers erased more than half of the prior session's gains.
How to identify it
- A prior advance and a strong green candle.
- A red candle that opens above the green close.
- The red candle closes below the midpoint of the green body.
Where it matters: Appears after an advance, near a high.
What it means
A sharp rejection after an attempt to extend the advance.
What confirms it
A following candle that closes lower.
What invalidates it
A close above the red candle's high.
Common mistakes
- Counting it when the red candle closes above the green midpoint.
Frequently asked questions
Is dark cloud cover bearish?
Yes, after an advance, once confirmed.
What is the bullish version?
The piercing line.
Related candlestick patterns
Educational content only, not financial advice. Chart patterns describe probabilities, not certainties, and every pattern can fail. See our disclaimer.