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Trading glossary · candles

dark cloud cover

Two candles after a rise: a big green one, then a red one that opens higher but falls below the middle of the green body.

The fuller meaning

A two-candle bearish reversal pattern after a rise: a long green candle followed by a red candle that opens above the first close and closes below the midpoint of the first body. It is a step weaker than a bearish engulfing and needs confirmation, ideally at resistance.

dark cloud cover.

Related words

bearish · bearish engulfing · bearish harami · bearish marubozu · body · bullish · bullish engulfing · bullish harami · bullish marubozu · candlestick