Beginner1 min readLast updated: 2026-06-10
Dark Cloud Cover — Complete Guide
Master the Dark Cloud Cover bearish reversal pattern — the opposite of Piercing Line.
What is Dark Cloud Cover?
Dark Cloud Cover is a 2-candle bearish reversal — the opposite of Piercing Line. The first candle is bullish, and the second opens above C1's high but closes below the midpoint of C1's body.
Rules
- C1: Large bullish candle
- C2: Opens above C1's high (gap up)
- C2: Closes below the 50% midpoint of C1's body
- C2: Must NOT close below C1's open (that would be Engulfing)
- Location: At resistance or after uptrend
Psychology
- Buyers continue pushing higher (C1)
- C2 opens even higher (bulls still confident)
- Then sellers take over aggressively, pushing deep into C1
- The "dark cloud" is covering the previous bullish optimism
Trading
- Entry: Below C2's low on next confirmation candle
- Stop: Above C2's high
- Target: Next support
- Weaker than Bearish Engulfing
- Needs additional confluence for reliability
Related Topics
- Piercing Line — Bullish opposite
- Engulfing — Stronger bearish signal