Is a Dark Cloud a signal to sell or short?

Question

Accepted Answer

Not on its own. We tested shorting the strong candles to the red line with the stop at the candle's high on every stock we scan, and on every chart it lost, as did every version we tried. So we use it as a heads-up, never a call. How members use it: a heads-up on a stock you own that just gapped up and failed. It is one more thing to look at next to your own plan, not a reason on its own to sell. Our rule is only the best setups: Dark Cloud makes no calls and sends no alerts from us (only the best setups).