Bearish Dark Cloud Cover Pattern
BEARISH DARK CLOUD COVER PATTERN (BDCCP)
top reversal pattern after an uptrend
1. Market is on an uptrend;
2. There is a long white stick on Day 1; and
3. On Day 2, there is a black stick which opened at a price above Day 1’s high.
The market goes up. Then there is a strong white stick that is followed by a gap. This implies that the bulls retain the control. But the rally does not continue. And the market closes near the lows of the day. In a way, the longs are shaken and the short sellers will now have a benchmark on where to place a stop, that is, at the new high of Day 2.
1. The chance for a top rises if the black stick’s close penetrates deeper into the white body of the previous day.