Back to the encyclopediaSchematic illustration – idealized candles.
Two candlesBearishReliability: medium
Dark Cloud Cover
Also known as: Dark Cloud Cover Pattern
After a green candle the red one opens higher but closes below the midpoint of the green. A bearish reversal signal after an uptrend.
What it looks like
A green candle, then a red one opening above the prior high that gives back more than half the green body.
What it means
Buyers started euphoric, but sellers took over and pushed price deep into the prior gain.
How it is traded
Short entry after confirmation; stop above the red candle's high.
Where & when – and the limits
The bearish counterpart to the piercing line, weaker than bearish engulfing. Only after an uptrend.
Related patterns
Education, not investment advice. Candlestick patterns are hints, not guarantees – they need confirmation and context (trend, levels, volume). Always manage risk with stop-loss and position size.
Learn more in the academy