Dark Cloud Cover candlestick pattern - पूरी जानकारी.

Dark Cloud Cover candlestick pattern - पूरी जानकारी.

You can get all the information you require regarding the Dark Cloud Cover candlestick pattern here.

·      Dark Cloud Cover Candlestick Pattern: Explained.

·      How to Recognize the Dark Cloud Cover Candlestick Pattern.

·      The Dark Cloud Cover Pattern's variations.

·      Trading the Dark Cloud Cover Candlestick Pattern: A Guide.

·      Trading Techniques for the Dark Cloud Cover Candlestick Pattern.

Ø Strategy 1: Retractions on Bare Charts Dark Cloud Cover.

Ø Strategy 2: Using Support Levels to Trade the Dark Cloud Cover.

Ø Strategy 3: Using Moving Averages to Trade the Dark Cloud Cover.

Ø Strategy 4: Using RSI Divergences to Trade the Dark Cloud Cover.

Ø Strategy 5: Using Fibonacci to Trade the Dark Cloud Cover.

Ø Strategy 6: Using Pivot Points to Trade the Dark Cloud Cover.

Dark Cloud Cover Candlestick Pattern: Explained.

One type of Japanese candlestick pattern is the Dark Cloud Cover.

The reversal pattern is bearish.

It usually shows rejection from higher prices and comes following a price rise to the upside.

Because we anticipate a bear move following the appearance of a Dark Cloud Cover at the appropriate time, the pattern is bearish.

It is a reversal pattern since we want to see price growth prior to the Dark Cloud Cover appearing, which is also a common indication that a trend is coming to an end.

Another mirror image of the Piercing candlestick pattern is the Dark Cloud Cover pattern.

How to Recognize the Dark Cloud Cover Candlestick Pattern.

Two candles combine to make the Dark Cloud Cover candlestick pattern.

The Dark Cloud Cover candlestick pattern can be recognized as follows:

1.    Bullish is the first candle.

2.    It is a bearish second candle.

3.    The second candle's open level needs to be higher than the first candle's (there is a gap there).

4.    The second candle's closure needs to fall below the first candle's 50% body level.

Look at……………......................................................................................................…… 

The Dark Cloud Cover Pattern's variations.

On your charts, the Dark Cloud Cover candlestick pattern can look a little different.

The tops of the candles might contain wicks. The green one, the red one, or possibly both, indicating further rejection from the top.

This is how it would appear on your charts:

Trading the Dark Cloud Cover Candlestick Pattern: A Guide.

Finding a pattern with the same shape on your charts is not enough to trade the Dark Cloud Cover candlestick pattern.

Let me clarify.

A pattern is valid not only because of its shape but also because of where it appears.

This implies that the same form could represent multiple things depending on where it appears.

The price should initially rise, indicating a bullish move, before we trade the Dark Cloud Cover.

A potential reversal to the negative is indicated by the appearance of a Dark Cloud Cover following this bullish rise.

Look at………………………........................................................................................….

The Dark Cloud Cover pattern is traded when the previous candle's low is broken, and it's that easy.

You should short that conservative trigger.

Look at……………………….............................................................................................

Because trading doesn't always go as planned, you also want to protect yourself.

And we employ a stop loss for that.

Stop losses come in a variety of varieties.

The most popular method is to set it using the other side of the pattern.

Look at………………………................................................................................................

But hold on; don't trade the Dark Cloud Cover just yet.

We need to know a few more things.

The Dark Cloud Cover candlestick pattern should ideally be traded in conjunction with other technical analysis or indicators to improve accuracy.

The Dark Cloud Cover pattern can be traded using the following tactics.

Trading Techniques for the Dark Cloud Cover Candlestick Pattern.

Strategy 1: Retractions on Bare Charts Dark Cloud Cover.

The Dark Cloud Cover is an excellent pattern to keep an eye out for when the price is down because it indicates a bearish reversal.

Simply watch for the onset of a pullback and note when the Dark Cloud Cover shows up.

That frequently signals the end of the retreat and the beginning of the next downward leg.

For Example……………………………..........................................................................….

Strategy 2: Using Support Levels to Trade the Dark Cloud Cover.

A good area to look for price reversals is at the levels of support and resistance.

We wish to trade the Dark Cloud Cover using resistance levels since we are searching for moves to the downside.

How it operates:

·      On your charts, draw the levels of resistance.

·      Await the price to rise and reach the level of resistance.

·      Look for a dark cloud cover at this level.

·      Short when the price hits the Dark Cloud Cover's final candle's low.

·      Assume a downward move and set your take-profit and stop-loss levels.

For Example…………………………..................................................................................... 

Strategy 3: Using Moving Averages to Trade the Dark Cloud Cover.

Moving averages are excellent tools for trading patterns.

When the price is declining, the goal is to trade pullbacks to the moving average.

How it operates:

·      When the price falls below a moving average, you can identify a downtrend.

·      Await a price increase before it reaches the moving average.

·      Look for any indications of dark cloud cover at the moving average.

·      Short when the price hits the Dark Cloud Cover's final candle's low.

 For Example……………................................................................................................…..

Strategy 4: Using RSI Divergences to Trade the Dark Cloud Cover.

Compared to the other trading tactics, this is a little different.

The price must first be on an upward trend, producing higher highs and higher lows, in order to identify a bearish RSI divergence.

This is how it operates:

·      Look for an upward trend.

·      After each leg to the upside, note the highs the price reaches.

·      Compare the price peaks with the RSI indicator at the same.

·      You can identify a divergence when the price makes higher highs and the RSI makes lower highs.

·      You now watch for a Dark Cloud Cover to show up at a higher price high that coincides with a lower RSI high.

·      Short when the price hits the Dark Cloud Cover's final candle's low.

·      Assume a downward move and set your take-profit and stop-loss levels.

For Example………………………................................................................................... 

Strategy 5: Using Fibonacci to Trade the Dark Cloud Cover.

The Fibonacci retracement tool is another well-liked method of trading the Dark Cloud Cover pattern.

Fibonacci indicates retracement levels at which the price is likely to regularly revert.

Different levels are more likely to complement the Dark Cloud Cover pattern depending on how strong the trend is. More information about the various Fibonacci retracement levels may be found here. 

This is how this strategy operates:

·      The price should be on a downward trend or at the beginning of a new one.

·      A move to the upside will then occur, and you wait for it.

·      Draw the levels from the move's peak to low using your Fibonacci tool.

·      You should wait till the price reaches a Fibonacci level and prints a Dark Cloud Cover.

·      Short when the price hits the Dark Cloud Cover's final candle's low.

·      Assume a downward move and set your take-profit and stop-loss levels.

For Example………………………….................................................................................. 

Strategy 6: Using Pivot Points to Trade the Dark Cloud Cover.

Pivot points are automatically determined levels of resistance and support based on mathematical calculations.

Although the Weekly and Monthly Pivot Points are also commonly employed, the Daily Pivot Points are the most popular if you are day trading.

Here's how to use pivot points to trade the Dark Cloud Cover pattern:

·      Turn on your charts' Pivot Points indicator.

·      Look for pivot points that is above the price; these will typically act as resistances.

·      The price should ideally be declining, but this is not necessary.

·      Await a price increase to reach a Pivot Point level.

·      You want to observe a Dark Cloud Cover pattern at that level, which indicates that the level is being refused.

·      Short when the price hits the Dark Cloud Cover's final candle's low.

·      Assume a downward move and set your take-profit and stop-loss levels. 

For Example………………………………........................................................................… 

What Is The Dark Cloud Cover's Success Rate?

The Dark Cloud Cover candlestick pattern has a 65% success rate, per Thomas N. Bulkowski's Encyclopedia of Candlestick Charts.