PATTERN: REVERSAL

TREND: BEARISH

RELIABILITY: High



How to identify it:

·  First day is a long white day

·  Second day is black with an open above the high of the previous day

·  Second day closes within but below the midpoint of the first day's body 

What it Means:

In an uptrend the market gaps open, but loses ground to fall below the midpoint of the

previous day. The Dark Cloud Cover pattern suggests an opportunity for the shorts to

capitalize on the next day's open: a warning sign to bullish investors. The Dark Cloud Cover

pattern is the opposite of the Piercing line pattern.