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Nikita (SEBI RA)

3rd Sep · SEBI-Registered Analyst

Dark Cloud Cover – Bearish Reversal

📊 The Dark Cloud Cover is the bearish opposite of the Piercing Pattern. ✅ Formation: 1️⃣ First candle – Long green (strong buying). 2️⃣ Second candle – Red candle opening gap-up but closing below the midpoint of the first green candle. ✅ Meaning: Bulls lose control after strong start, sellers push market down → reversal sign. 📌 Example: Stock rallies to ₹580, opens gap-up at ₹590 but closes ₹570 (below 50% of green candle) → bearish reversal likely. 🧠 Rule: Stronger at resistance zones + with high volume selling.

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