Dark Cloud Cover
Bearish Abandoned Baby | Bearish Engulfing | Bearish Kicking | Bullish Abandoned Baby | Bullish Engulfing | Bullish Kicking | Dark Cloud Cover | Evening Doji Star | Evening Star | Falling Three Methods | Identical Three Crows | Morning Doji Star | Morning Star | Rising Three Methods | Three Black Crows | Three Inside Down | Three Inside Up | Three Outside Down | Three Outside Up | Three White Soldiers |
Reliability: high
Identification
A long white day is followed by a black day which gaps above the high of the white candle and then closes below the midpoint of the first day's body.
Psychology
In an uptrend or within a bounce of a downtrend, the stock gaps up and immediately encounters sellers who push the stock back down. This simply signifies the possibility of a reversal that is more reliable if the gap up occurs at resistance and the black day is accompanied by a surge in volume.
The bearish Dark Cloud Cover is similar to the bearish Engulfing.