Bearish Reversal
Intermediate
60% reliable · Bulkowski
Dark Cloud Cover Pattern
A two-candle bearish reversal pattern. The first candle is a long bullish candle. The second candle opens above the first candle's high but closes below the midpoint of the first candle's body. This is the bearish counterpart of the Piercing Line.
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What's in the Dark Cloud Cover lesson
- ▸Annotated chart with the Dark Cloud Cover highlighted across the context candles.
- ▸Numbered identification rules covering body, shadows, color and position in trend.
- ▸The psychology of the formation: why buyers or sellers create this exact shape.
- ▸Practical tip on what to wait for before treating the pattern as a tradeable signal.
- ▸Quiz questions with explained answers, including this exact pattern.
Quick answers
Is the Dark Cloud Cover pattern reliable?
The Dark Cloud Cover has a 60% reliability rate per Bulkowski's encyclopedia, a statistical baseline. Confirmation candles and volume strengthen the read. The Candle Trader app has the full formation rules and a quiz.
What timeframes does the Dark Cloud Cover work on?
Candlestick patterns work on any timeframe, from scalping (M1-M5) through day trading (M15-H1) to swing trading (H4-W1) and long-term investing. The shorter the timeframe, the more false signals. Always check higher timeframes for context.