Inside long Candlestick No Trade
We have a bearish trend which have started to lose steam with the appearance of a bullish candle.
The next candle is a PIN BAR. The real body of this candle is 1/3 (ONE THIRD) of the entire candle.
The top wig is 2/3 (TWO THIRD) of the entire candle.
The implication is that even though the bulls are applying pressure to push price up,
a bearish force is also strong to bring price down.
This is a stalemate situation; I will not trade but wait.
Features of a Strong Dark Cloud Cover Candlestick Pattern
Dark Cloud Cover is one of the most powerful candlestick patterns that the traders need to know about.
It has created a lot of profitable trade setups and many great opportunities for many traders with its accurate predictions.
There are so many candlestick patterns formed on the price charts every day.
However, those that are good to take and make money with are not more than a few.
dark Cloud Cover is one of them.
dark Cloud Cover should be taken as a strong trade setup under some circumstances.
dark Cloud Cover is a bearish reversal candlestick pattern.
It is bearish because it is a signal indicating the beginning of a downward movement.
When it forms on the chart, it is most probably the price will go down.
It is reversal because it has to form at the top of an uptrend, or while a few of the previous candlesticks are bullish.
When formed at the top of an uptrend, this pattern is the bulls exhaustion signal indicating an incoming bearish attack.
This pattern consists of two candlesticks.
The first one has to be a bullish candlestick, and the second one has to be a bearish candlestick.
The second candlestick has to open a little above the close price of the first candlestick.
Then it has to go all the way down, and close somewhere above the open price of the first candlestick.
In Dark Cloud Cover patterns, usually the second candlestick opens several pips above the close price of the first candlestick.
But this is not that important, it is optional.
The most important thing to have a Dark Cloud Cover pattern is that the second candlestick closes above the open price of the first candlestick.
Otherwise it can not be called a Dark Cloud Cover pattern.
If it closes below the open price of the first candlestick, it is called Bearish Engulfing Pattern.
This is a strong bearish reversal pattern also.