Dark Cloud Cover is a bearish reversal pattern. It appears in an uptrend. This pattern is comprised of 2 candles. First candle is a long white one, accompanied with heavy volume. Next day's candle opens above the previous day's high. But it closes below the mid-point of the first candle. However, the closing of second candle is not below the opening level of white candle.
Strategy: Short positions can be created once the low of the first candle is exceeded. Stop loss can be placed above the high of second candle.Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
