DARK CLOUD COVER(bearish)

DARK CLOUD COVER:-

 DEFINITION:-

*The Dark Cloud Cover is a two-day bearish reversal pattern. 

*This pattern is distinguished by the second day’s black real body penetrating into or below the midpoint of the first day’s white real body

RULES OF RECOGNITION:-

*An uptrend must be in progress

*The first candle is white, reflecting the continuing bullish mood

*The second day’s candle gaps higher on the opening, giving an impression of a strong market ahead, but sellers surface and pressure prices lower throughout the day, resulting in a close that penetrates back into the real body of the first day’s black candle.

*To qualify as a Dark Cloud Cover, the black candle on the second day must close at or below the midpoint of the first day’s white candle’s real body

*The Japanese name for Dark Cloud Cover is kabuse, which means “to get covered or to hang over.”