HOME ABOUT ARCHIVES BLOG SUBSCRIBE   SIGN IN











Abandoned Baby
Advance Block
Belt Hold
Breakaway
Dark Cloud Cover
Deliberation
Doji Star
Dragonfly Doji
Downside Gap Three Methods
Downside Tasuki Gap
Engulfing
Evening Doji Star
Evening Star
Falling Three Methods
Gravestone Doji
Hanging Man
Harami
Harami Cross
Identical Three Crows
In Neck
Kicking
Meeting Lines
On Neck
Separating Lines
Shooting Star
Side By Side White Lines
Three Black Crows
Three Inside Down
Three Line Strike
Three Outside Down
Thrusting
Tri Star
Two Crows
Upside Gap Two Crows

Upside Gap Two Crows
print this page
send to a friend



Pattern: reversal
Reliability: high

Identification
A long white day is followed by a black candle which gaps in the direction of the trend. The final day engulfs the small black day and closes within the gap of the first two days.

The Psychology
In an uptrend or within a bounce of a downtrend, successive gaps up which close down to force a black candle to form suggests the bulls are weaken. They are not able to rally the stock intraday and the bears are starting to take over. The reliability of the increases if the gaps up bump into resistance.

The bearish Upside Gap Two Crows is similar to the bearish Two Crows and bearish Evening Star.



Here is an example of reversal pattern that would be better used to exit a long position rather than initiating a short. After all, the stock had just bounced on big volume. The prudent trader would look to exit a long position and then rebuy the dip.

 

 

 

 

 

 

 

 



» back to top