Bearish Upside Gap Two Crows
This is a three-candlestick bearish reversal pattern. The gap between the black body of the second day and the white body of the first day represents the upside gap. The second and third black days represent the two black crows.
How to identify
- 1st day is a long white day.
- 2nd day is red and gaps above the 1st day.
- 3rd day is red and opens above and engulfs the 2nd day.
- 3rd day closes above the close of the 1st day.
The gap created on the 2nd day has already started to be tested by the 3rd day.
Two consecutive lower closes places a damper on the bullishness. Look for lower prices and the gap to be filled soon.