What is an Upside Gap Two Crows Candlestick Pattern?
An Upside Gap Two Crows is a three-candle bearish reversal pattern that shows up after an uptrend. Price gaps higher, then prints two red candles in a row that start eating back into that gap.
The setup tells you something important: buyers got excited at the open, then ran out of fuel. Two sessions of selling later, the gap is under threat — and the bulls are losing the tape.
What Does an Upside Gap Two Crows Candlestick Pattern Indicate?
The pattern tells you buyers are exhausted. They forced price higher with a gap, then couldn't defend it for two sessions running.
Here's what's actually happening on the chart:
- The gap = aggressive optimism (FOMO buying, news pop, breakout chase)
- The two red candles = supply absorbing demand at premium prices
- The close back into the gap = sellers taking control
Translation: the traders who chased the gap are now underwater. And when chasers are underwater, the next leg is usually down.
Is the Upside Gap Two Crows Candlestick Pattern Bullish or Bearish?
Bearish. Full stop.
The pattern only forms after an advance, and it shows a failed gap-up followed by two days of selling. That's not bullish behavior — that's distribution.
Treat it as a warning shot that the uptrend is losing sponsorship. Doesn't mean it's a guaranteed reversal, but the path of least resistance has shifted lower until proven otherwise.
How to Identify an Upside Gap Two Crows Candlestick Pattern?
Look for three specific candles forming after a clear uptrend. The structure has to match — close isn't good enough.
Here's the exact checklist:
- Context: Clear uptrend going in. No uptrend, no pattern.
- Candle 1: Long green candle. Strong real body, not a doji.
- Candle 2: Bearish candle that gaps up above Candle 1's close (often above its high), then closes red.
- Candle 3: Bearish candle that opens inside Candle 2's real body and closes lower, pushing back into the gap between Candles 1 and 2.
🔥 Pro Tip: The bigger the gap on Candle 2 and the deeper Candle 3 closes into that gap, the more weight the signal carries. A tiny gap and a shallow Candle 3 close = noise. A wide gap and a Candle 3 that nearly fills it = something to act on.
How to Trade an Upside Gap Two Crows Candlestick Pattern?
Wait for the third candle to close before doing anything. Then look for follow-through — price has to keep selling, not reclaim the gap.
Here's the playbook:
- Entry trigger: Short on a break below Candle 3's low, or wait for the next candle to close below Candle 3 for cleaner confirmation.
- Stop loss: Above the pattern's high (usually Candle 2's high). A reclaim of that level and new highs invalidates the bearish read.
- First target: Nearest support — prior swing low, moving average, or the base of the gap. Scale out or trail if momentum builds.
- Best context filter: This signal works best at major resistance or after an extended run, where the gap-up smells like exhaustion rather than a fresh breakout.
⚠️ Warning: Trading this pattern at random levels in the middle of a chart is how you get chopped. Context matters more than the pattern itself. No resistance, no extension, no edge.
What Happens After an Upside Gap Two Crows Candlestick Pattern?
Three things tend to happen, and you should plan for all of them:
- Clean follow-through: Price rolls over, fills the gap, and continues lower toward support. This is the trade you're hoping for.
- Choppy grind: Price drifts lower but stalls at support. You take partials and trail the rest.
- Failure: Buyers reclaim the gap, push to new highs, and the pattern becomes a shakeout. This is why the stop matters.
The pattern is a probability, not a prophecy. Trade the structure, not the prediction.
What are the Different Types of Upside Gap Two Crows Candlestick Patterns?
There are no named variants in standard candlestick literature — but experienced traders read the same pattern differently based on a few factors.
What changes the strength of the signal:
- Gap size: Bigger gap = more trapped buyers = stronger reversal potential.
- Candle 3 depth: The deeper Candle 3 closes into the gap, the more committed the sellers.
- Reclaim speed: If the highs get reclaimed quickly, the pattern is dead.
📌 Key Takeaway: Don't waste time hunting for "variants." Focus on whether this specific instance is strong or weak based on the three factors above. That's where the edge actually lives.