【Today’s Knowledge】Pattern — Dark Cloud Cover

1. Professional Definition
🔹 (1) The Dark Cloud Cover pattern refers to a pair of candles with opposite trends that form a bearish reversal pattern.
In this pattern, a bearish (downward) candle follows a bullish (upward) candle.
🔹 (2) Specific Characteristics:
a. The opening price of the bearish candle is always higher than the previous bullish candle’s closing price.
b. The closing price of the bearish candle is below the midpoint of the first bearish candle.
c. It is a unique combination of two candles with completely opposite properties.
d. The distance between the bullish candle’s closing price and the bearish candle’s opening price creates a price gap in the market.
As the name suggests, this candlestick pattern is easy to spot, like a dark cloud in a clear sky.

2. Identifying the Dark Cloud Cover Candlestick Pattern
🔹 (1) The Dark Cloud Cover pattern is very distinctive. Due to its contrasting features, this pattern is easier to recognize.
🔹 (2) Recognition Steps:
a. In a bullish market, a regular bullish candle appears on the chart. This candle’s shape is normal, with typical body and shadow lengths.
b. Following the bullish candle, a bearish candle appears immediately. The opening price of the bearish candle is always higher than the previous bullish candle’s closing price, indicating a price gap. Additionally, the closing price of the second bearish candle is always below the midpoint of the first bullish candle.