Upside Gap Two Crows Candlestick Pattern Explained: Meaning & Importance
What Is the Upside Gap Two Crows?
A three-candle bearish reversal pattern, a long bullish candle, followed by two bearish candles that gap up but fail to hold gains.
How to Identify It
Candle 1: large bullish. Candle 2: bearish, gaps above Candle 1. Candle 3: bearish, opens above Candle 2 but closes inside Candle 1's body.
What Does It Signal?
Despite two gap-up opens, bears take control both days. This signals bulls are exhausting and a trend reversal downward is likely incoming.
Where Does It Appear?
It forms exclusively at the top of an established uptrend. The pattern is rare but highly reliable when volume confirms bearish pressure on Candle 3.
How to Trade It
Confirm with a fourth bearish candle before selling. Use stop-loss above Candle 2's high. Combine with RSI or MACD for stronger signal confirmation.
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