DARK CLOUD
One candle that every long holder should know: a gap up that fails and closes under the last candle's open. Dark Cloud paints it yellow on your chart, with a red line at the swing low it could fall to.
Let me open with a question.
Have you ever held a stock through a pullback you could see coming, and wished something on the chart had told you to look?
Markets don't go up in a straight line. There are pullbacks on the way, and sometimes worse. The problem is that the warning signs are easy to miss when you are rooting for the trade.
What if one candle got painted bright yellow on your chart the moment it showed up, with a line at where it could fall to?
My name is Ben. I've been part of building trading tools for close to a decade, me and a really great team: TriTrader+, MagniZone, the Morning Power Hour system, OCP, EFC, 5 Candle Master, Green Light Options and others thousands of traders have used.
Our options team has over 20 years of combined experience in the trenches.
I'm a long-term bull, and that will never change. But I want a clear heads-up when buyers fail, especially on a stock I already own. That's why we built Dark Cloud Reversal: it marks the bearish engulfing candle the moment it closes. Today it runs on our own charts too, and everything on this page is drawn from them.
Here's what you're going to see in this briefing:
- The one candle: what a Dark Cloud is, and why a failed gap up matters.
- Yellow or orange: the strong ones with room to fall, and the weak ones to skip.
- The red line: the swing low it could fall to.
- The honest part: what happened after the newest ones, and what our testing found.
Don't take my word for any of it. Here it is, drawn from the market as this page loaded.
The newest strong Dark Clouds, and what happened next
These are real ones from our own daily charts, the newest on names you know, drawn the way the indicator draws them: the yellow candle, and the red line at the swing low it could fall to. No entry, stop or target, because Dark Cloud does not call trades. Each one is shown with what the stock did over the next candles, whichever way it went.
October 22: XLE, the energy ETF, a strong
It did not fall to the line: it went back over the candle's high.
October 21: RDDT, a strong
It fell to the red line at $145.51.
October 20: Walmart, a strong
It did not fall to the line: it went back over the candle's high.
Some fall to the line, some don't. That is why it is a heads-up for your own read, not a signal to act on alone.
Every strong Dark Cloud in the last 90 days
on 176 stocks and ETFs
the red line
the candle's high
ten candles
Counted from our own charts when this page loaded, as the test trade: short the close, out at the red line, the candle's high, or ten candles on. It is the test it did not pass, which is why it is drawn and not called.
Why traders miss the turn
Here's the mistake I see all the time.
A stock gaps up, everyone feels great, and nobody looks at where it closed. By the time the pullback is obvious, it has already taken back weeks of gains.
The fix isn't predicting tops. It's noticing, the same day, when the buyers fail.
A gap up that fails
Here's the idea behind the candle.
The day opens above yesterday's close: buyers are eager. Then sellers take over all day, and it closes under yesterday's open, wiping out the whole of yesterday's gain. That swing in one session is the bearish engulfing candle, the Dark Cloud.
When there's a swing low well under it (1.5% or more), there is room to fall: the candle is strong, painted yellow, with a red line at that low. Without that room it is weak, painted orange.
How Dark Cloud works
Dark Cloud marks the bearish engulfing candle, strictly: a green candle, then a red one that opens above its close (a gap up) and closes under its open.
It is strong when the lowest low of the last 10 candles is at least 1.5% under the close: room to fall. A strong one is painted yellow, with a red line at that swing low and a red fade down to it: where it could fall to. Any other is weak: painted orange with an orange ✕.
Drawn, not called. We tested it as a sell on every stock we scan, ten years of daily candles and three years of hourly ones, checked on the most recent 30% it was never tuned on: shorting the strong candles, aiming for the red line with the stop at the candle's high, lost on every chart (about −0.1R a trade), and so did every version we tried (shorter and longer holds, wider stops, other targets, only when the market or the stock was falling). Our rule is only the best setups, so Dark Cloud makes no calls and sends no alerts. The candles are marked on the charts, as on TradingView, for your own read.
How members use it: as a heads-up on a stock you own that just gapped up and failed. It is one more thing to look at, not a reason on its own to sell or to short.
Fresh Dark Clouds lists the strong ones on the last three candles of each chart, newest first.
How to read it:
- ✓ A green candle, then a red one
- ✓ The red one opens above the green one's close (a gap up)
- ✓ And closes under the green one's open
- ✓ Strong: a swing low 1.5% or more under the close
What Dark Cloud is, and what it isn't
I'll be straight with you about this one.
We tested Dark Cloud as a sell on every stock we scan: ten years of daily candles and about three years of hourly ones, the most recent 30% held back. Shorting each strong candle at its close, aiming for the red line with the stop at the candle's high, lost on every chart, and so did every version we tried: shorter and longer holds, wider stops, other targets, only when the market was falling.
So it is not a short signal, and we don't call it. On our own platform it is drawn, never alerted. What it is good for is the heads-up: a stock you own just gapped up and failed, and the red line shows where it could fall to. That is worth one more look at your plan.
Why this beats squinting at candles
You don't have to spot it. The candle is painted the moment it closes.
You see the room. Yellow when there is a swing low to fall to, orange when there is not, with the red line at that low.
It scans for you. The multi-ticker scanner on TradingView watches a list of popular stocks at once.
It works with what you already trade. A heads-up beside your other systems, not one more system to obey.
We tell you the truth about it. It is drawn, not called, and this page shows what happened next, misses included.
What you actually get
- The Dark Cloud indicator for TradingViewThe strong candle painted yellow with its red line and fade, the weak one orange with a ✕, and the alerts. Works on the free TradingView plan.
- The Dark Cloud scanner for TradingViewMany tickers at once, so you see which ones just printed one.
- The Dark Cloud Reversal StrategyThe rules on when to act on it, where a stop goes and where to take profit.
- The Dark Cloud MasterclassSpotting, timing and using the candle, step by step, on video.
- Our recommended brokers BONUSWhere to place the trade.
- Put Dark Cloud on your daily or 4-hour charts in TradingView, and the scanner on your watchlist.
- Set the alert once.
- A yellow candle on a stock you hold? Look again at your plan, your stop and the red line.
- Decide for yourself. That is it.
One glance when it fires. Your plan, your call.
The offer
The old page listed it at $997. Today Dark Cloud Reversal is $49, one payment, for life. No monthly charges, no renewals.
14-day money-back guarantee.
14 DAYS, NO QUESTIONS ASKED
Use Dark Cloud Reversal for 14 days. If it is not for you, ask through Support in your dashboard and you get every penny back. No questions asked.
The questions I'd ask before buying this
Does it call trades?
No. Dark Cloud marks the candle. We tested shorting every strong one, on every stock we scan, over ten years of daily candles and three years of hourly ones, and it lost on every chart, so we do not call it and we do not sell it as a short signal.
So what is it for?
A heads-up. Most members use it on stocks they already own: a yellow candle is a reason to look again at the trade, the stop and where it could fall to.
What chart works best?
The old guide says the daily or the 4-hour, and that is where we draw it on our own charts too (with the 1-hour).
Do I need a paid TradingView account?
No. The indicator and the scanner work on the free plan, and take a couple of minutes to add.
What is included?
The Dark Cloud indicator and the multi-ticker scanner for TradingView, the Dark Cloud strategy, the masterclass and our recommended brokers.
Does it repaint?
No. Dark Cloud reads closed candles, and what it drew on a closed candle stays drawn.
I already own Dark Cloud Reversal. Do I need this?
No. It is already in your members area. This page is for traders who do not have it yet.
Is this a subscription?
No. $49 once, lifetime access. No monthly or yearly charges.
What if it's not for me?
Use Dark Cloud Reversal for 14 days. If it is not for you, ask through Support in your dashboard and you get every penny back. No questions asked.
Two versions of the next failed gap
Sometime soon a stock you own will gap up and close under yesterday's open.
In one version, you notice a week later, after it has given back the move.
In the other version, the candle was painted yellow that afternoon, with a line at where it could fall to, and you looked at your plan again.
Dark Cloud marks the next one either way. The only question is whether it's on your chart.
P.S. Your login works within a couple of minutes of ordering, and Dark Cloud goes on your chart in about two minutes.
P.P.S. It is one payment, for life. No renewals.
P.P.P.S. 14 days, no questions asked. If Dark Cloud Reversal isn't for you, ask through Support in your dashboard.