Different shapes of the candlesticks

Typical candlesticks & Marubozu

Hammer and Hanging Man & Shooting Star

High Wave & Engulfing Pattern
Dark Cloud Cover
Piercing Line

Morning and Evening Star and Abandoned Baby


3. Dark Cloud Cover

It is a Bearish reversal signal that can be formed at the top of an uptrend by two candlesticks. The first one is Bullish and the second one is Bearish. Dark Cloud Cover is formed when the second candlestick is started above the high price of the first candlestick but goes down and becomes finished above the open price of the first candlestick.

Dark Cloud Cover can be considered as a stronger reversal signal when:

1. The closing price of the bearish candlestick is close to the opening price of the previous candlestick.
2. Both candlesticks are shaven (they have no shadow) and the bearish candlestick is opened at the close of the bullish candlestick and also is closed at the close of the bullish candlestick.
3. When the bearish candlestick is opened above a strong resistance and then goes down.

( From The Language of Japanese CandleSticks - The Only Real Time Indicators)


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