지표
signal

The Dark Cloud Cover indicator is a technical analysis tool designed to identify potential bearish reversal patterns in the market. This pattern consists of two consecutive candlesticks:
- A bullish (green) candle that signals strong buying momentum.
- A bearish (red) candle that opens above the previous close but closes below the midpoint of the prior candle, indicating selling pressure.
This formation suggests a potential shift in market sentiment, where buyers lose control and sellers take over.
Features & Functionality:
- Pattern Detection:
- The indicator scans for the Dark Cloud Cover pattern based on candlestick price action.
- When detected, it visually highlights the pattern to alert traders.
- Trend Filter (Optional):
- To improve accuracy, the indicator includes an optional trend filter using a Moving Average (MA).
- If enabled, the pattern is only considered valid when occurring in an uptrend.
- Confirmation Logic:
- The indicator can validate the bearish signal by checking the next candle.
- A confirmation candle is identified if it closes below the Dark Cloud Cover low and has higher tick volume than the average of recent candles.
- This ensures stronger reliability of the signal.
- Visual Markers:
- Yellow Candles: Mark the detected Dark Cloud Cover pattern.
- Orange Candles: Highlight the confirmation candle if volume conditions are met.
This indicator helps traders spot high-probability reversal setups, improving decision-making for short entries or risk management strategies.
More from this author
좋아하실 만한 다른 항목
지표
indices
RT True Strength Index
Enhance trading with TSI! Use the True Strength Index for clear insights into market momentum and trend strength.
지표
signal
[Stellar Strategies] Wave Trend Pro
Momentum oscillator identifying reversals using dual WaveTrend lines, histogram, and OB/OS levels with optional signals.