【Today's Knowledge】Pattern —— Dark Cloud Cover

1. Professional Definition

🔹（1）The Dark Cloud Cover pattern refers to a pair of opposing candlesticks that form a bearish reversal pattern.

In this pattern, a black candlestick follows a white candlestick.

🔹（2）Specific Characteristics:

a. The opening price of the black candlestick is always higher than the closing price of the previous white candlestick.

b. The closing price of the black candlestick is lower than the midpoint of the first white candlestick.

c. It is a unique combination of two candlesticks with completely opposite natures.

d. The gap between the closing price of the white candlestick and the opening price of the black candlestick creates a price gap in the market.

As the name suggests, this candlestick pattern is easy to spot, just like a dark cloud in a clear sky.

2. Identifying the Dark Cloud Cover Candlestick Pattern

🔹（1）The Dark Cloud Cover pattern is very distinctive. Due to its striking contrast, this pattern is easier to identify.

🔹（2）Identification Steps:

a. In an uptrend, a standard white candlestick appears on the chart. This candlestick has normal body and wick lengths, typical of a regular candlestick.

b. Following the white candlestick, a black candlestick appears. The opening price of the black candlestick is always higher than the closing price of the white candlestick, indicating a price gap. Additionally, the closing price of the second black candlestick is always below the midpoint of the first white candlestick.