Dark Cloud Cover ~ Reversal Candlestick Signal

We have already gone through Morning Star Candlestick Signal; which is reversal candlestick and sometime it gives cautious approach prior to reversal of trend. 

Now today lets have look at Dark Cloud Cover Candlestick Signal. 

This candlestick formation is Trend Reversal from Bullish to Bearish Trend and it is 2 candlesticks signal pattern. 

Lets have look at different charts and try to understand Dark Cloud Cover candlestick signal first. 

Now lets understand this step by step.

Day 1 or Candlestick or Trend

Underlying trend must be uptrend or candle must have closed in green or significant higher than opening levels or in other words current candle should be in positive wrt to previous close. 

Day 2 Dark Cloud Cover Candlestick 

Opening must be higher than previous close and current candle close must be below half way mark of previous day's candlestick.  

Lets try to understand via simple numerical example.. 

Day 1 

Open 100 
High 115
Low 98
Close 112

Day 2

Open 116 
High 118
Low 102
Close 104

By this example we hope that this candlestick signal pattern is clear to all of you. 

Please note till now we have already discussed Bearish Engulfing, Bullish Engulfing, Evening Star & Morning Star Candlestick Signals. In coming sessions we shall discuss more. 
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Please note these candlesticks signals may or may not act as reversal as there are several factors which affects price movement of underlying asset.

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Please note this blog post is for education purpose only. While utmost care is taken while writing this post but any human error cant be ruled out and we apologize for same in advance.