Dark Cloud Cover Pattern: Meaning and How to Trade It (2026)

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Check out the dark cloud pattern on the Bybit chart.

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What is a dark cloud cover?

The dark cloud pattern is a two- candle bearish reversal pattern in which the second candle penetrates more than 50% of the body of the first candle. The name comes from the image of dark clouds covering a bright sky.

Dark Cloud Cover

🔴 Bearish Signal

This is a weaker version of Bearish Engulfing. If the second positive candle completely engulfs the first candle, it is a dominant type, and if it penetrates only half, it is a dark cloud type.

exact conditions

Conditions	standards
Appearance location	After the uptrend
1 bag	Big beekeeping
2-bag cigar	1st bar closing price gap up from above
2nd closing price	Penetration of 50% or more of the body of the 1st pole
2nd closing price	The market price of 1 bag cannot be exceeded (then it is a type of control)

Conditions for increasing reliability

Gap-up start: If the 2nd bar starts with a gap-up and falls significantly, the signal strength increases.
Near resistance line: Appears at major resistance lines
Trading Volume: Trading volume surges in 2nd bar
RSI 70+: Appears in overbought zone

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Penetrating type vs. cloud type comparison

	Penetrating type	Dark cloud type
signal direction	🟢 Rise	🔴 Decline
Appearance location	After the decline	After the rise
2 pack colors	Beekeeping	Eumbong
revert	50%+	50%+ penetration

Perfect Mirror Image — Same principle and reliability.

Futures trading short strategy

Entry: After closing the 2nd negative candle or confirming the next candle. 
Stop Loss: Above the 2-bar open price (high) 
Target: 1-bar opening level (full retracement)

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