How do you spot a Dark Cloud Cover candle?

Appears at the top of an uptrend. Candle 1: a large bullish candle with a solid body. Candle 2: opens above the first close (a gap up strengthens the signal).

Is the Dark Cloud Cover candle a bullish or bearish signal?

A bearish reversal pattern made of two candles. Confirmation: optional (>70%). Reference success rate 61%. See it yourself on live daily candles for any symbol in the members' technical terminal.

Bearish signal ▼ · 12 pattern

Dark Cloud Cover

Dark Cloud Cover (Dark Cloud Cover) is the bearish opposite of the Piercing Line. The first candle is a large bullish candle continuing the trend. The second opens above the first close, then reverses sharply to close below the midpoint of the first body, like a dark cloud blocking the rise in prices.

PATTERN ID

Signal Bearish ▼

Reliability ★★★☆☆

Win Rate 61%

Expected move -3–7%

Timeframe Daily

Confirmation Optional (>70%)

The short answer

What is a Dark Cloud Cover candle?: Dark Cloud Cover (Dark Cloud Cover) is the bearish opposite of the Piercing Line. The first candle is a large bullish candle continuing the trend.
How do you spot a Dark Cloud Cover candle?: Appears at the top of an uptrend. Candle 1: a large bullish candle with a solid body. Candle 2: opens above the first close (a gap up strengthens the signal).
Is the Dark Cloud Cover candle a bullish or bearish signal?: A bearish reversal pattern made of two candles. Confirmation: optional (>70%). Reference success rate 61%. See it yourself on live daily candles for any symbol in the members' technical terminal. Open the technical terminal →

Pattern illustration

The second candle opens above the high, then closes below the midpoint

How to identify the pattern

Step-by-step checks

Appears at the top of an uptrend
Candle 1: large bullish candle with a solid body
Candle 2: opens above the first candle's close (a bullish gap that strengthens the pattern)
Candle 2 closes below the midpoint (50%) of candle 1's body
A break below 70% is a high-confidence signal, self-confirming

Trading psychology

The power struggle between buyers and sellers

The rise continues with a strong buying session. The next day opens higher, and the bulls look fully in control. Then sellers step in and push price back through the whole range of the previous session to close below the midpoint. Clear distribution at high levels.

Outlook and confirmation

Entry conditions and expected price move

Optional, adds confidence

A 61% success rate for a -3–7% drop over 5–10 days. It pairs well with RSI in overbought conditions and prior resistance levels. Self-confirming on a break above >70%.

Ideal setting for the pattern

Top of an uptrend

Recommended timeframe: daily

Where to find it on the platform

Technical terminal for members
Shows the daily-timeframe candles for any symbol on the platform's list. You identify the pattern by eye: the terminal does not name it.

How it is traded in practice

The Dark Cloud is the mirror of the Piercing Line at tops: a strong green candle, then a red one that opens with a gap up and closes below the midpoint of the first body. The higher open followed by a collapse below the midpoint shows the last burst of greed and its reversal. Exit or sell after the second candle closes, with the stop above its high, the highest point greed reached before the cloud. The "below the midpoint" condition is as strict as its bullish twin: a close above it makes this an ordinary red candle.

Common mistake

Selling on a cloud in a young uptrend: the pattern needs a mature, extended rise before it so that its reversal means something. In the first wave of a new trend, the "cloud" is often just the first dip that gets bought. Ignoring volume is another trap: a cloud on heavy volume at resistance is real distribution, while one on thin volume in open space is only a pause.