Dark cloud cover
Dark cloud cover is a two candle bearish reversal. The second candle opens above the first candle's close, then closes below the midpoint of the first candle's body.
In depth
It only counts after a move up. The first candle closes green. The second opens above that close, sells off, and closes below the halfway point of the first candle's body. Bodies decide the test and wicks are ignored for the shape.
Numbers make it clear. The first candle opens at 100 and closes at 104, so the body midpoint is 102. The next opens at 105 and closes at 101.50. Buyers gave back more than half of the session before. The level is the highest high of the pair, never a close, because a close is a price that already traded and price tends to come back to it.
Why it matters
The midpoint test is the part that filters. A close at 102.10 fails and a close at 101.90 passes, which stops you drawing a line at every red candle. Where you put the level decides your stop, and a stop sitting inside prices that already traded gets taken out.
Tag your dark cloud cover trades and the By tag table shows win rate and average result for that setup against everything else you do. Replay each one on a TradingView chart with your fills marked to see where the level actually sat.
Frequently asked questions
A two candle bearish reversal where the second candle opens higher, then closes below the middle of the first candle's body.
Engulfing needs the second body to cover the first completely. Dark cloud cover only needs it past the midpoint.
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