About dark cloud cover candlestick pattern:
Dark cloud cover is a strong bearish reversal candlestick pattern. when it appears on the top of an uptrend then beginning a strong downtrend. You can easily find out a dark cloud cover candlestick pattern. It is the opposite chart pattern of piercing line candlestick pattern.Sample image of dark cloud cover:
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How to recognize?
Do you know it is very easy to recognize a dark cloud cover candlestick pattern? Ok, I tell you how do you find out this.
- It appears on the top of an uptrend.
- It needs Two strong candlestick.
- The first candlestick is strong Bullish.
- The Second candlestick is strong Bearish.
- The Second Bearish candlestick appears on the top of the uptrend by creating a new high opening price.
- Second candlestick's closing price above the middle of the first Bullish candlestick's.
How to use:
Now I tell you how to use this chart pattern
Signal:
Strong Bearish
Tread:
Sell
Time Frame:
Day
Stop Loss:
Above the second bearish candlestick.
Take Profit:
250 pips
Accuracy:
78% positive
Caution:
Trade with support and resistance level. Don't trade during upcoming major economic news.
Trade with higher time frame
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