Dark Cloud Pattern Indicator in TradingView - Access Free

The Dark Cloud Pattern Indicator is an analytical tool in TradingView indicators, designed to identify reversal candlestick patterns.

This tool helps detect trend reversal points, automatically highlighting two essential patterns: "Dark Cloud Cover" and "Piercing Line" on the chart while providing detailed information on potential price reversal zones.

The Dark Cloud Cover pattern is a bearish reversal pattern that appears at the end of an uptrend. Conversely, the Piercing Line pattern is a bullish reversal pattern that forms at the bottom of a downtrend.

Dark Cloud Pattern Indicator Specifications

The table below summarizes the key features of the Dark Cloud Candlestick Pattern Indicator:

Indicator Overview

The Dark Cloud Reversal Indicator displays entry signals in two ways:

• A red circle indicates a strong bearish reversal signal. If the pattern loses strength, the signal is replaced with a black arrow
• The entry signal is marked with a green circle in a strong bullish reversal pattern. If the pattern is weak, the signal is represented by a blue arrow

Indicator in an Uptrend

The indicator evaluates candlestick structures when the price approaches key support levels or previous market lows.

If a bullish candlestick with a larger body covers more than 50% of the previous candlestick, a bullish entry signal is triggered.

A green circle appears on the chart if the Piercing Line pattern is confirmed as a valid reversal pattern. If the pattern is weaker, the entry signal is shown with a blue arrow.

Indicator

in a Downtrend

When the price reaches key resistance levels or previous market highs, it signals a weakening uptrend, and the indicator can generate a sell signal. As the price nears these levels, the indicator examines candlestick structures and evaluates potential trend reversals.

A sell entry signal is triggered if a strong, bearish candlestick follows a bullish candle covering more than 50% of its body.

A red circle appears on the chart if the Dark Cloud Cover pattern is confirmed as a strong reversal signal. If the pattern is less reliable, the indicator displays a bearish entry signal using a black arrow.

Dark Cloud Pattern Indicator Settings

The settings panel for the Dark Cloud Reversal Indicator is displayed in the image below:

• Show Dark Cloud: Display the Dark Cloud Cover bearish reversal pattern
• Show Piercing Line: Display the Piercing Line bullish reversal pattern

Conclusion

The Dark Cloud Pattern Indicator effectively identifies entry points in bullish and bearish trends by detecting candlestick reversal patterns. This signal and forecast Tradingview indicator assists in predicting potential trend changes.