Dark Cloud Cover
A two-candle top pattern where a down candle opens above the previous up candle's high and closes below…
In plain English
A two-candle top pattern where a down candle opens above the previous up candle's high and closes below its midpoint.
Dark cloud cover starts with a strong up candle. The next candle opens higher, as if the rally will continue, then sellers drag it down to close below the middle of the first candle's body.
It is like clouds rolling in over a sunny day: a hint the uptrend is losing strength. It is weaker than a full bearish engulfing and works better with confirmation.
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