This pattern appears at the end of a bullish cycle, consisting of bullish candle 1 and bearish candle 2. Bearish candle 2 closes 50% lower than the body of candle 1.
Candle 3 is a confirmation candle. There are 2 cases:
• If candle number 3 is a red candle (bearish candle), we execute a SELL order on the next 4 candle.
• If candle number 3 is a green candle (bullish candle), then we are out of the market.
Candle 4 is the entry candle. We enter an order at the beginning of candle 4, at the end of candle 4, exit the order. In this Dark Cloud Cover pattern, we execute a SELL order when candle 4 opens, we close a SELL order when candle 4 closes.