Upside Gap Two Crows

Appearance: A small black (red) bodied candle following and gapping above a large white (green) candle and followed by another smallish black (red) bodied candle.

Criteria: There must be a gap between the white (green) first candle and the first of the two small black (red) candles. The ideal formation would have the second black (red) candle opening above the open of the first black (red) candle, and close below the close of the candle.

Effect: Upside Gap Two Crows is a reversal signal following an up-trend.

Note: In candlestick descriptions, "white (green)" refers to an up-bar, and "black (red)" refers to a down-bar. Individual traders prefer different bar colors. For example, we personally trade with candles set to green for up and red for down. (TradeStation defaults their Candlesticks to this color convention.) Most related textbooks use white (or green, if color is used) for up and black (or red) for down.