What it means
Dark cloud cover: large green candle in an uptrend, then a red candle that gaps up open (opens above the prior high) but closes ≥50% into the green body. Bearish reversal signal — the gap-up open showed continued bullish enthusiasm, but the close deep into the prior body shows that enthusiasm was completely absorbed and reversed during the session.
Why it matters
Dark cloud cover is the 'almost engulfing' bearish pattern. Slightly weaker than full engulfing (which would require close BELOW the green body's open), but the gap-up failure is a strong sentiment shift signal in its own right.
How to use it
Require strong prior uptrend (3+ green sessions). Gap-up open is essential — opens INSIDE the prior body are not dark cloud cover. Confirmation = next candle closes lower. Stop above the gap-up high.
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