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Definition

 

Bearish Two Crows formation consists of three candles. The first white candle is followed by a gap. This gap is filled on the third day by the black candle. Bearish Two Crows forecasts a possible trend reversal.

  • Trend: Reversal
  • Expected trend: Bearish
  • Previous trend: Bullish
  • Reliability: Moderate
  • Type: Bearish
  • Number: 3

Recognition

  • The market is in an upward trend.
  • The first day is a long white candle.
  • The second day starts with an upward gap and a short black candle is formed.
  • The third day opens in the body of the previous candle and closes in the body of the first candle.

Interpretation

The long white candle still reflects the ascending trend on the market. The second day starts with an upward gap, but there is a black candle formed. The gap between the first two days is only filled on the third day. The third day signals a trend reversal as it is also a black candle.

Important factors

The candle on the fourth day can confirm the reversal. The confirmation could come from a black candle with a downward gap or a lower closing price.