How to Use Dark Cloud Cover Pattern to Trade Crypto

The Dark Cloud Cover is a Japanese candlestick pattern that crypto traders use to spot bearish reversals within the market. The pattern is fairly easy to spot and read. When traders see it, they use the pattern as a signal to enter short positions or possibly to exit long positions. 

However, the pattern should not be viewed in isolation. It’s best to get confirmation from other technical signals, like divergence on oscillators, or to see the pattern developing at an area of resistance before taking action.

When enough evidence is present, placing a bearish trade from the pattern is simple.