Dark Cloud Cover / ダーククラウドカバー
Reference values based on Bulkowski's "Encyclopedia of Chart Patterns". Data is primarily from U.S. markets and may differ for other markets.
A two-candlestick pattern that appears at the top of an uptrend. The first candle is a large bullish candle, and the second opens above the previous close then declines significantly, closing below the midpoint (50%) of the first candle's body. It indicates that buyers tested the highs but were pushed back by sellers, suggesting the end of the uptrend and a potential reversal to the downside.
After the Dark Cloud Cover is confirmed, enter short once the next candle opens as a bearish candle. Alternatively, enter when price drops below the second candle's low.
Project the body length of the first bullish candle downward from the second candle's low to determine the price target. Or target the nearest support line.
Place a stop-loss slightly above the second candle's high (the gap-up portion).
If the second bearish candle's volume exceeds the first bullish candle's, it indicates strong selling pressure and enhances reliability. Increased volume reflects accelerated profit-taking.