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Dark Cloud Cover
The Dark Cloud Cover is a bearish reversal pattern represented by one candle. This candle makes a new high but closes below the middle point of the previous candle, then initiating a potential downward movement. After a Dark Cloud Cover appears in a chart, the price is likely to initiate a new bearish trend or perform a pull-back within the uptrend. If selected in your strategy, this one-candle pattern will signal a sell. Since this pattern is compounded by one candle, many traders would combine this pattern with an indicator to have more confirmation when it comes to open a position.
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