I was very fortunate to be in the right place at the right time on a recent trip to the high peaks of the southern Appalachian Mountains and documented a true waterfall of clouds or cloudfall through time-lapse photography and close-up HD video of a virtual Waterfall of Clouds spilling down a steep narrow mountain valley. Most pictures or videos of "cloud waterfalls" are of valley fog or slow moving low clouds covering a large area taken from way above or far away. This is the real deal - a very small scale "Cloudfall" or Cloud Cascade that one could walk right up to and watch as if it was a waterfall! This occurred on October 7th 2013 after a strong cold front pushed through the Plott Balsam Mountain Range of southern Appalachia - one of the greatest concentration of 6 thousand foot peaks east of the Rockies. The simple graphics below explain the phenomena.
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How a CloudFall forms in the gap between two high mountain peaks.
A true small scale Cloud Waterfall or Cloud Cascade can form in the saddle between two high peaks. This phenomena can continue for hours under the right conditions.