Candlestick Patterns

Dark Cloud Cover

A two-candle bearish reversal where a red candle opens above the prior high then closes below the midpoint of the prior green candle.

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Schematic of a dark cloud cover — illustrative geometry, not a live price chart.

Dark cloud cover appears after an advance: a strong green candle is followed by a red candle that opens above the prior high (a gap up), then sells off to close below the midpoint of the green body. The failed gap and reversal show buyers losing control.

It's the bearish mirror of the piercing line. A close deeper into the green body — or all the way below its open, which makes it a bearish engulfing — is more bearish.

On StockSetups

Dark cloud cover is in StockSetups' bearish candlestick set, used as a caution flag on extended names rather than a short.

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Related terms

Piercing LineBearish EngulfingShooting Star

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