Dark Cloud Cover
The bearish opposite of the Piercing Pattern. After a green candle, a red candle opens higher and closes below the middle of the green body.
Where it matters
Meaningful after a rise and near resistance.
Faded candles are the trend before it, the band is the pattern, the dashed line is the level it formed at, and ✓ marks the confirming candle.
How to read it
- 01
How it forms
Candle 1 is green. Candle 2 opens above its close, then falls to close below 50% of candle 1’s body.
- 02
Where it matters
Meaningful after a rise and near resistance.
- 03
What confirms it
The next candle closes below the low of the dark cloud candle.
- 04
Where the idea is wrong
A close above the high of the dark cloud candle.
- 05
What volume should do
Higher volume on the second candle than on the first supports the selling.
- 06
Common mistake
Accepting a close above the halfway mark, which is a much weaker message.
Read it next
From the book
Read the full chapter in the book.
Chapter 10 of Trading Candlestick Patterns explains the Dark Cloud Cover with real Indian market charts, volume context and stop-loss placement.
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Educational content only. A pattern describes what buyers and sellers did; it does not predict what price will do next. Not investment advice or a buy, sell or hold recommendation.