Dark Cloud Cover

The dark cloud cover is a two candle pattern. It is a reversal pattern and will only be found in uptrends. It will primarily be found at the end of an uptrend but also can be found at resistance levels. In the first candle, the price will push higher. The second candle, the price will gap up from the prior day but will ideally close near the low of the prior day candle. The psychology behind this pattern is that the sellers are rejecting the higher price and seizing control of the trend. The key to this pattern being a reversal is confirmation by a candle close under the formation. Extra attention is warranted if the second candle or the confirmation candle has an increase in volume. We will work to provide as many examples as we can to help you identify this pattern.

Dark cloud cover $TSLA

Dark cloud cover Tesla motors $TSLA

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