Definition
Bearish Upside Gap Two Crows consist of three candles and forecasts a trend reversal. The first two days are a white and a black candle with a gap between them. The third candle is also black, but its opening price is above the previous candle’s opening price. This day closes below the previous day’s closing price.
- Trend: Reversal
- Expected trend: Bearish
- Previous trend: Bullish
- Reliability: High
- Type: Bearish
- Number: 3
Recognition
- The market is in an upward trend.
- The first day is a long white candle in the ascending trend.
- The second day is a black candle with a gap.
- The third day is also a black candle. It opens above and closes below the previous day. Therefore, it covers the second day fully.
- The closing price on the second day is higher than on the first day.
Interpretation
In the ascending trend the share opens with an upward gap, but the candle turns black. This signals the weakening of the trend, but the share price stays above the first day’s closing price. The third candle confirms the reversal.
Important factors
The formation is highly reliable, but requires a confirmation. The confirmation could come from a black candle with a downward gap or a lower closing price.
