Monday, August 2, 2021

Dark Cloud Cover

  Dark Cloud Cover: The Dark cloud cover is a two candlestick bearish reversal pattern and much similar to the bearish engulfing pattern. In this pattern, the second candle, unlike the bearish engulfing pattern falls short of engulfing the first candle, instead it crosses 50% the body of the first candle. The confirmation comes when a candle breaches the bottom of the pattern. On confirmation a short trade can be taken with stop loss above the high of the candle.




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