A strong bullish candle followed by a bearish candle that opens higher but closes below the midpoint of the prior body. Sellers erase more than half of the advance.
How to identify it
- First candle is a solid bullish bar in an uptrend
- Second opens at or above the prior close
- Second closes below the midpoint of the first body
Entry
Sell below the low of the dark cloud candle.
Stop loss
Above the high of the second candle.
Target
The open of the first candle, then the next support.
Invalidation
A close back above the midpoint of the first body.
Does it work for you?
Textbook reliability means little until you know your own numbers. Tag your dark cloud cover trades in TradeZento and it shows your win rate, average win and loss, and P&L per trade for this pattern, so you know whether to keep it in your playbook.