Dark Cloud Cover

Dark cloud cover is a two-candle bearish reversal pattern. The second candle opens strong, then closes deep inside the prior green candle body.

At A Glance

• Name: Dark Cloud Cover
• Category: Bearish Candle Patterns
• Type: Bearish Reversal
• Number of candles: 2 candles
• Typical context: After buying pressure or near an upper resistance area.

How To Identify It

• Body: First candle is green. Second candle is red and closes meaningfully into the prior green body.
• Wicks: Wicks are secondary. The close into the prior body is the key.
• Relationship: The red candle does not need to cover the full green body like a bearish engulfing candle.

Look for a green candle followed by a red candle that opens higher and then closes well into the prior green body. It does not have to engulf the whole candle; the failed higher open is the key.

Context

This pattern is most useful when a higher open or push gets sold and price closes back into the prior buying candle.

Dark cloud cover matters most after a run up, near resistance, or when price gaps or opens strong and then cannot hold that strength. The location makes the failed upside attempt easier to read.

What It Shows

The first candle shows buyer control. The second candle starts with more strength, but sellers reverse the tone by pushing price back into the prior candle body.

What To Watch Next

Watch whether price stays inside or below the prior green body and starts losing the red candle low. That shows the failed strength is being accepted.

The read weakens if price cannot stay inside the prior green body. That means sellers did not take back enough of the prior move.

Common Confusion

Dark cloud cover is weaker visually than bearish engulfing because it only moves into the prior body.

Key Takeaway

Dark cloud cover shows a strong open that fails into the prior green candle body after a bullish move.

Related Lessons

• Bearish Engulfing
• Evening Star
• Bearish Candle Patterns
• Candlestick Basics