The change from bullish to bearish occurs in just one candle. It also represents a trend change from up to down when price breaks out downward. That happens when price closes below the lowest low in the dark cloud cover. Thereafter, price trends lower in a comparatively smooth move downward.
While the Dark Cloud Cover is not as potent a reversal candle as bearish engulfing, its appearance in the chart should be respected. Look for other indicators, such as bearish momentum divergence, to confirm the message that this candle communicates.
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