For a better understanding of this article, you should already know what Japanese Candlesticks are and all their features; for this reason, we suggest you to read this introductory article to Japanese Candlesticks: Japanese Candlestick Chart ( So that you can understand also the Ratings given to the Candlestick Patterns for the “quality” of the signal and for their frequency to “appear” on Charts).
Let’s analyse now the following Candlestick Patterns: “Upside Gap Two Crows” and “Two Crows”.
Upside Gap Two Crows
– Normally it should be a signal of Bearish reversal of the current Trend.
– It occurs during an Uptrend; confirmation is required by the candles that follow the Pattern.
– The First Candle is long and white.
– The Second Candle is black and it gaps up from the First Candle.
– The Third Candle is black, it has the Open above the Open of the Second Candle; whereas it has the Close between the Real Bodies of the Two Previous Candles (So it’s above the Close of the First Candle and below the Close of the Second Candle) and it fully contains the Real Body of the Second Candle.
Two Crows
– It occurs during an Uptrend; confirmation is required by the candles that follow the Pattern.
– Normally it should be a signal of Bearish reversal of the current Trend.
– It is a variant of the Upside Gap Two Crows and this Pattern is the same of the previous one.
– The only difference between these Two Patterns, is the Third Candle: it is black, it has the Open within the Real Body of the Second Candle, while it has the Close within the Real Body of the First Candle.
