Bearish Upside Gap Two Crows Pattern

Upside gap two crows is a bearish market reversal pattern which indicates the end of an uptrend and start of a downtrend. This three day candlestick pattern closely resemble two crows pattern; the difference is in third day candlestick which opens above the second day candlestick and closes below the same candlestick without completely filling the gap.

The requirements of bearish upside gap two crows pattern includes

• It should form at the top of a significant uptrend.
• The first day should be a bullish day with a long white/colorless candlestick.
• Second day should be a bearish day with a small black/colored candlestick which gaps above to the first day candlestick.
• The third day should also be a bearish day with a candlestick opening above the second day candlestick and closing below the same candlestick.
• The real-bodies of neither the second-day nor the third-day candlestick should completely fill the first formed gap.

Bearish upside gap two crows pattern forms when bulls fail to keep their momentum even after two high openings. After a long bullish first day prices opens at new highs on second day (above a noticeable gap). But bears dominate the day and bring the prices down but they are not able to fill the gap. This tempt bulls to try again on next day and prices opens at new highs on third day but again the bears have managed to dominate the day. This causes the bulls to loss their confidence and the trend is reversed.

Bearish upside gap two crows is a highly reliable pattern, but is not as much as bearish as two crows pattern. Confirmation is highly suggested which can be a lower opening or bearish candlestick on fourth day.

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