(Bearish)
Two Crows |
Characteristic of Candlesticks: Reversal
Relevance of Candlesticks: Bearish / Sideway
Prior Trend of Candlesticks: Bullish
Reliability of Candlesticks : 3rd Grade
Confirmation of Candlesticks: Reliable
Candlestick Patterns Key Reference |
DESCRIPTION
(Bearish) Two Crows pattern is a top reversal pattern with the same reliability and rarity of the Evening Star.
PATTERN RECOGNITION
1. (Bearish) Two Crows pattern can be identified by an uptrend followed by a top reversal.
2. Refering to above diagram, we will see long bullish candlestick.
3. Then we will see the second bearish candlestick by a gap up.
4. Finally we will see the third bearish candlestick which the opening price is inside the previous candlestick's body which closes inside the body of the first bullish candlestick.
EXPLAINATION
In the (Bearish) Two Crows pattern, the market is in an extended uptrend.
We see a gap in the opening of the second candlestick. The higher opening is followed by a lower close warning that there is some weakness in the rally.
The third candlestick also open
at a higher price but not above the open of the previous candlestick.
Then price went down with a close well within the body of the first candlestick. This third candlestick
action fills the gap of the second candlestick. That shows the bull start to weaken quickly.
The 3rd grade reversal patterns are reliable group of reversal patterns which may require confirmation in the next session.
POINT TO NOTE
A confirmation on the fourth day is required to show that the uptrend has reversed in a form of a bearish candlestick which a lower close or a large gap down is suggested.
CANDLESTICK PATTERNS KEY REFERENCE
Irrespective of Color (Can be bullish or bearish) |
Uptrend |
Consolidation |
Downtrend |
ANTICIPATED DIRECTION OF TREND
Lighter Arrow = Lower Probability
Solid Arrow = Higher Probability
More Likely to go sideway, Less likely to rally
|
More likely to rally, Less likely to go sideways
|
More likely to go sideway, Less likely to fall
|
More likely to fall, Less likely to go sideways |
