# Dark Cloud Cover Dark Cloud Cover is an indicator on [Vela](https://vela.luxalgo.com/chart), our next-generation charting platform, written in Pine Script®. Detects the dark cloud cover two-candle bearish reversal (a strong bullish candle answered by an open above it and a close deep into its body) with uptrend, new-high, and volume filters grading each print. Dashed trigger and stop levels, hover tooltips, and follow-through alerts turn the pattern into a plannable setup. Defaults use the strict gap open and 50% close depth. - Indicator in the LuxAlgo Library, by LuxAlgo, published Mar 23, 2026. - Access: free. - Concepts: [Dark Cloud Cover](https://www.luxalgo.com/library/concept/dark-cloud-cover/) (primary) - Open on Vela: https://vela.luxalgo.com/chart?pineScriptCodeId=ijns2buc7l819y8ivc2f518q - Page: https://www.luxalgo.com/library/indicator/dark-cloud-cover/ **Dark Cloud Cover** detects the classic two-candle bearish reversal (a strong bullish candle answered by an open above it and a sell-off closing deep into its real body) and grades every print with context filters and trade levels. Rebuilt from the strict definition of [dark cloud cover](https://www.luxalgo.com/library/concept/dark-cloud-cover/), it sizes the first candle against the preceding tape's average real body and by default demands an advance above a 50-period average. ## How to Trade the Dark Cloud Cover? - **Pattern label prints**: buyers paid up for new highs and instantly gave them back, a short-horizon top warning. Hover for close depth, volume ratio, and the trigger/stop prices. - **Bearish Follow-Through**: a bearish candle right after the pattern is the conventional confirmation. - **Trigger Level break**: price below the dashed trigger (the pattern low by default) marks downside follow-through: the reversal is active. - **Stop level break**: a trade back over the second candle's high invalidates the pattern. ## Dark Cloud Cover Settings - **Open Requirement** (default Above Prior High (Strict)): classic gap open, or a relaxed open above the prior close where gaps are rare. - **Body Average Length** (default 14): candles in the average real body yardstick. - **Strong Body Multiplier** (default 1.0): minimum first-candle body versus that average. - **Minimum Close Depth %** (default 50): how far into the first body the close must reach. - **Uptrend Filter** (default enabled) with **SMA Length** (default 50): the first candle must close above the average. - **New High Location** (default disabled) with **Window** (default 20): only patterns at the window's highest high. - **Volume Filter** (default disabled) with **Multiple** (default 1.0) and **Length** (default 20): elevated second-candle volume. - **Trigger & Stop Levels** (default enabled), **Trigger Level** (default Pattern Low), **Levels Extension** (default 10), plus **Pattern Labels** and **Pattern Highlight** (both enabled). ## Frequently Asked Questions ### What separates Dark Cloud Cover from the Piercing Line? They are mirror images. The [Piercing Line](https://www.luxalgo.com/library/indicator/piercing-line/) is the bullish version: after a decline, a strong bearish candle answered by an open below it and a deep recovery close. ### Why doesn't a close through the entire first body qualify? Because that is a bearish engulfing, a separate pattern. The second close must stay above the first candle's open, keeping the two cleanly apart. ### Which trigger convention should I use? Pattern Low, the default, waits for a break of the two candles' low: fewer but cleaner activations. Second Candle Close records the signal close for immediate entries, accepting more failed patterns. ## Related indicators - [On-neck / In-neck / Thrusting](https://www.luxalgo.com/library/indicator/on-neck-in-neck-thrusting/) (Chart & Candlestick Patterns): markdown at https://www.luxalgo.com/library/indicator/on-neck-in-neck-thrusting.md - [Rising/falling Three Methods](https://www.luxalgo.com/library/indicator/rising-falling-three-methods/) (Chart & Candlestick Patterns): markdown at https://www.luxalgo.com/library/indicator/rising-falling-three-methods.md - [Swing Highs/Lows & Candle Patterns](https://www.luxalgo.com/library/indicator/swing-highs-lows-candle-patterns/) (Hammer): markdown at https://www.luxalgo.com/library/indicator/swing-highs-lows-candle-patterns.md - [Reversal Candlestick Structure](https://www.luxalgo.com/library/indicator/reversal-candlestick-structure/) (Hammer): markdown at https://www.luxalgo.com/library/indicator/reversal-candlestick-structure.md - [Candlestick Structure](https://www.luxalgo.com/library/indicator/candlestick-structure/) (Doji): markdown at https://www.luxalgo.com/library/indicator/candlestick-structure.md - [Evening Star](https://www.luxalgo.com/library/indicator/evening-star/) (Chart & Candlestick Patterns): markdown at https://www.luxalgo.com/library/indicator/evening-star.md - [Hanging Man](https://www.luxalgo.com/library/indicator/hanging-man/) (Chart & Candlestick Patterns): markdown at https://www.luxalgo.com/library/indicator/hanging-man.md - [Candlestick Channels](https://www.luxalgo.com/library/indicator/candlestick-channels/) (Hammer): markdown at https://www.luxalgo.com/library/indicator/candlestick-channels.md --- Source: https://www.luxalgo.com/library/indicator/dark-cloud-cover/ (LuxAlgo Library). Free to use with attribution: https://www.luxalgo.com/library/license/