Bearish Two Crows
This pattern is a made up of three candlesticks. The black candlesticks of the second and third day represent the two crows that perched on the first white candlestick.
How to identify
- 1st day is a long white day.
- 2nd day gaps up and is red.
- 3rd day is red and opens inside the body of the 2nd day, then closes inside the body of the 1st day.
The gap created on the 2nd day gets filled by the 3rd day. This quick pull back does not bode well for the bulls. This price action indicates a short term top.