Dark Cloud Cover is a two-candle bearish reversal pattern that forms at the top of an uptrend or at a resistance level. The first candle is a strong bullish (green) candle reflecting continued buying momentum. The second candle opens above the previous day's high gapping up initially—but then sells off sharply, closing below the midpoint of the first candle's body. This behaviour suggests that buyers briefly pushed prices higher but were overpowered by sellers, who drove the price well into the previous day's bullish territory before the close. The deeper the second candle closes into the first candle's body, the stronger the reversal signal. Traders typically look for confirmation through a bearish follow-through candle the next session.
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