[candlestick classroom] Bearish Dark Cloud Cover, etc.

wsjboy

Bearish Dark Cloud Cover


This pattern signals a trend...                
Reversal
       
How to identify...
   1. 1st day is a long white day.
   2. 2nd day is a black day which opens above the 1st day's high.
   3. 2nd day closes within the 1st day, but below the midpoint.

Psychology...
A long white candlestick is formed on the 1st day and a gap up is created on the 2nd day. This is encouraging to the bulls. However, the 2nd day closes below the midpoint of the 1st day. Longs quickly question their strategy.

wsjboy

an ongoing situation:

wsjboy

niufen88

thanks

buhutong

no confirmation needed?

wsjboy

another ongoing situation:

wsjboy

no confirmation needed?
buhutong 发表于 2010-9-28 11:22

BEARISH DARK CLOUD COVER
Type:         Reversal
Relevance:         Bearish
Prior Trend:         Bullish
Reliability:         High
Confirmation:         Suggested

Important Factors:

If the black real body’s close penetrates deeper into the prior white real body, the chance for a top increases. There are some Japanese technicians who require more than a 50% penetration of the black day’s close into the white real body. If the black candlestick does not close below the halfway point of the white candlestick then it is better to wait for confirmation following the dark cloud cover; and even if it does, a confirmation may still be necessary. This confirmation may be in the form of a black candlestick, a large gap down or a lower close on the next trading day.

ranchgirl

NFLX:

following a failed Bearish Deliberation
There is a successful Dark Cloud Cover