The cloud cover is a combination bearish reversal candlestick in the 12 Golden K, which in some cases is seen as a signal that an uptrend is about to correct or come to an end. The cloud cover has high requirements for the structure, with the most perfect situation being formed by a combination of two candlesticks of opposite colors. The first one must be a bullish candle, and the second one must be a bearish candle, with the closing price of the second bearish candle needing to penetrate more than half of the body of the first bullish candle. The overcast clouds also have a deformed structure, as shown in the figure. However, the essence remains unchanged; ultimately, the closing price of the bearish line must penetrate more than half of the body of the first bullish line. Note: 1. The top that appears at the end of an uptrend can be seen as a signal that the trend is about to correct or end. 2. The dark cloud cover does not appear at the very top of the trend, abandon entry. 3. Be cautious when entering if the shadow line is too long. 4. Must be used in conjunction with key positions.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
Learn a candlestick pattern every day
The cloud cover is a combination bearish reversal candlestick in the 12 Golden K, which in some cases is seen as a signal that an uptrend is about to correct or come to an end.
The cloud cover has high requirements for the structure, with the most perfect situation being formed by a combination of two candlesticks of opposite colors. The first one must be a bullish candle, and the second one must be a bearish candle, with the closing price of the second bearish candle needing to penetrate more than half of the body of the first bullish candle.
The overcast clouds also have a deformed structure, as shown in the figure. However, the essence remains unchanged; ultimately, the closing price of the bearish line must penetrate more than half of the body of the first bullish line.
Note:
1. The top that appears at the end of an uptrend can be seen as a signal that the trend is about to correct or end.
2. The dark cloud cover does not appear at the very top of the trend, abandon entry. 3. Be cautious when entering if the shadow line is too long.
4. Must be used in conjunction with key positions.