β€Ή All Posts
Nikita (SEBI RA)

6th Oct Β· SEBI-Registered Analyst

Dark Cloud Cover – Bearish Reversal Signal πŸ“‰

πŸ“Š The Dark Cloud Cover is the bearish counterpart of the Piercing Pattern, seen at the top of an uptrend. βœ… Formation (2 candles): 1️⃣ Strong bullish candle in an uptrend. 2️⃣ Bearish candle that opens above the previous high but closes below the midpoint of the first candle. βœ… Meaning: Buyers are losing strength β†’ sellers taking control β†’ reversal possible. πŸ“Œ Example: Stock rallies β‚Ή760 β†’ β‚Ή800, next candle opens β‚Ή810 and closes β‚Ή785 (below midpoint β‚Ή785) β†’ Dark Cloud Cover β†’ bearish reversal likely. 🧠 Rule: Stronger signal if volume rises on the bearish candle.

KOTAKBANK

#WatchOutFor
1,060 likesΒ·51 comments