Dark Cloud Cover

Identification

A long white day is followed by a black day which gaps above the high of the white candle and then closes below the midpoint of the first day's body.

The Psychology

In an uptrend or within a bounce of a downtrend, the stock gaps up and immediately encounters sellers who push the stock back down. This simply signifies the possibility of a reversal that is more reliable if the gap up occurs at resistance and the black day is accompanied by a surge in volume.

The bearish Dark Cloud Cover is similar to the bearish Engulfing.