reversal pattern emerges as a “dark cloud” over an uptrend. It is a bearish
Dark Cloud signal is a signal that tells an obvious reversal of a trend. It is
because it looks like a dark cloud over a nice bright sunny uptrend.
first day is a long white candlestick at the top of an uptrend. The body of the
second candlestick is black. The second day opens higher than the high of the
first day, and closes at least one half way down the first day candle. The
further down the white candle, the more confirmation of a reversal.
close at or below the first day open transforms this dark cloud pattern into a
bearish engulfing pattern).