TOP 10 Reversal Candlestick Patterns Every Forex Trader Needs To Know In 2019

#4: Dark Cloud Cover Candlestick Pattern

The dark cloud cover candlestick pattern is a 2 candlestick pattern formation.

The first candlestick is a bullish candlestick. The second candlestick is a bearish candlestick. But here’s the thing with the second bearish candlestick: it has to at least close 50% below the previous period’s price range.

The fact that the 2nd bearish candlestick closes more than 50 % below the first bullish candlestick means that bears have now taking control and the trend is most likely to head down.

Here’s what a dark cloud cover candlestick pattern looks like:

 

Dark Cloud Cover Candlestick Pattern

Where Dark Cloud Cover Patterns Form On A Chart

Look for dark cloud cover patterns on:

  • resistance levels
  • downward trendline touches
  • fib retracement levels

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