Dark Cloud Cover

Dark Cloud Cover

In candlestick charting, a bearish indicator in which a large black candle (representing a loss on the trading day) follows a large white candle (representing a gain on the previous trading day). The close of the current trading day must be about halfway between the opening and closing prices of the previous trading day. This is represented on the chart by drawing the bottom of the black candle next to the middle of the white candle. A dark cloud cover may represent the reversal of a previous bullish trend, and technical analysts look for confirmation in the following day's trading.
References in periodicals archive ?
'Price action shows a bearish dark cloud cover a candlestick formation; this signals a short-term pullback,' Papa Securities said.
See also: <a href="http://www.ibtimes.com/articles/20091211/bearish-dark-cloud-cover-formation.htm">Bearish Dark Cloud Cover Formation</a>&nbsp;
'Price action shows a bearish dark cloud cover candlestick formation; this signals a short-term pullback,' Papa Securities said.