Price gaps higher in an uptrend, yet two crows (bearish candles) settle in above the gap. The gap is not yet filled, but the failure to extend higher hints at a top. A three-candle bearish reversal pattern.
The Upside Gap Two Crows is a three-candle bearish reversal pattern that appears at the tail end of an uptrend.
After a long bullish candle drives price higher with force, price gaps up once more. But it goes no further. Two bearish candles (the two crows) settle in above the gap.
There is the second small bearish candle, then the third bearish candle. The third opens higher than the second, yet still closes bearish, engulfing the second candle's body from above. Even so, its close stays above the first candle's close, and the gap itself is not yet fully filled.
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"Two Crows" pictures two black birds circling above the ground of a bullish candle. Crows are an omen of misfortune, signaling that the advance has lost its glow. Price gaps higher, only to be pushed back down at that height. The failed gap-up is the essence of this pattern.
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