As of 04/02/2020
  Indus: 21,413 +469.93 +2.2%  
  Trans: 7,446 +93.13 +1.3%  
  Utils: 729 +21.32 +3.0%  
  Nasdaq: 7,487 +126.73 +1.7%  
  S&P 500: 2,527 +46.40 +1.9%  
YTD
-25.0%  
-31.7%  
-17.0%  
-16.6%  
-21.8%  
  Targets    Overview: 03/15/2020  
  Down arrow19,000 or 25,600 by 04/15/2020
  Down arrow6,700 or 9,000 by 04/15/2020
  Down arrow600 or 800 by 04/15/2020
  Down arrow7,000 or 8,400 by 04/15/2020
  Down arrow2,300 or 2,900 by 04/15/2020
CPI (updated daily): Arrows on 4/1/20
As of 04/02/2020
  Indus: 21,413 +469.93 +2.2%  
  Trans: 7,446 +93.13 +1.3%  
  Utils: 729 +21.32 +3.0%  
  Nasdaq: 7,487 +126.73 +1.7%  
  S&P 500: 2,527 +46.40 +1.9%  
YTD
-25.0%  
-31.7%  
-17.0%  
-16.6%  
-21.8%  
  Targets    Overview: 03/15/2020  
  Down arrow19,000 or 25,600 by 04/15/2020
  Down arrow6,700 or 9,000 by 04/15/2020
  Down arrow600 or 800 by 04/15/2020
  Down arrow7,000 or 8,400 by 04/15/2020
  Down arrow2,300 or 2,900 by 04/15/2020
CPI (updated daily): Arrows on 4/1/20

Bulkowski on the Two Crows Candle Pattern

 

Two Crows: Summary

The two crows candlestick acts as a bearish reversal but only about randomly. Thus, you cannot depend on this breaking out downward or upward, for that matter. The overall performance is on the far side of mid list, so the price trend after the breakout is just mediocre.

A look at the performance numbers shows that the best performance comes from patterns that obey the primary trend: upward breakouts in a bull market or downward ones in a bear market. Those "trade with the trend" setups look as if they will do well.

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My book, Encyclopedia of Candlestick ChartsEncyclopedia of Candlestick Charts book., pictured on the left, takes an in-depth look at candlesticks, including performance statistics.

If you click on the above link and then buy the book (or anything) while at Amazon.com, the referral will help support this site. Thanks.

-- Tom Bulkowski

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Important Results
Discussion
Identification Guidelines
Three Trading Tidbits
Example
See Also

Two Crows: Important Results

Theoretical performance: Bearish reversal
Tested performance: Bearish reversal 54% of the time
Frequency rank: 64
Overall performance rank: 61
Best percentage meeting price target: 54% (bear market, down breakout)
Best average move in 10 days: -4.84% (bear market, down breakout)
Best 10-day performance rank: 26 (bull market, up breakout)

All ranks are out of 103 candlestick patterns with the top performer ranking 1. "Best" means the highest rated of the four combinations of bull/bear market, up/down breakouts.

The above numbers are based on hundreds of perfect trades. See the glossary for definitions.

The ideal two crows candlestick
Two Crows

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Two Crows: Discussion

The two crows candlestick acts as a bearish reversal in theory as well as in reality, but testing shows that it acts that way only 54% of the time. I consider that "near random" because you will not be able to predict the breakout direction with any accuracy. The overall performance rank is 61, which is well down the performance list from 1 (best). With a frequency rank of 64, the two crows candlestick should be plentiful enough to find.

The best average move 10 days after the breakout is a drop of 4.84% after a downward breakout in a bear market. I consider moves higher than 6% to be good ones, so this candlestick falls well short of that. The best 10-day performance rank is 26 and that happens after an upward breakout in a bull market. That gauge is a comparison with other candle types, and the two crows does well.

Two Crows: Identification Guidelines

CharacteristicDiscussion
Number of candle linesThree.
Price trend leading to the patternUpward.
ConfigurationLook for a tall white candle in an upward price trend. Following that, a black candle has a body that gaps above the prior candle's body. The last day is another black candle, but this one opens within the prior candle's body and closes within the body of the first candle in the pattern.

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Two Crows: Three Trading Tidbits

If you want a few bones from my Encyclopedia of candlestick charts book, here are three to chew on. The pages refer to the book where the tips appear.

  1. Two crows candles that appear within a third of the yearly low perform best -- page 856.
  2. Select tall candles for the best performance -- page 856-857.
  3. Trade the two crows in an upward retrace of the primary down trend -- page 858.

Two Crows: Example

The two crows candlestick on the daily scale

The two crows candlestick appears circled in red on the daily scale. In an upward price trend, look for a tall white candle. Following that is a black candle with a body that gaps above the prior candle's body, like that shown. The last day is another black candlestick that opens within the body of the prior black body but closes within the body of the white candle.

In this example, the breakout from the two crows candlestick is upward because price first closes above the top of the candlestick pattern. Thus, this candle acts as a bullish continuation of the upward price trend.

An appealing setup for the two crows is to find the pattern when the primary trend is downward. The two crows appear as part of an upward retrace of the downward trend. Once price breaks out lower, the stock joins the existing trend and they head off toward zero together.

-- Thomas Bulkowski

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See Also

 

Support this site! Clicking any of the books (below) takes you to Amazon.com. If you buy ANYTHING while there, they pay for the referral.

My novels:  Bumper's Story Head's Law

Chart Patterns: After the Buy Getting Started in Chart Patterns, Second Edition Trading Basics Fundamental Analysis and Position Trading Swing and Day Trading Visual Guide to Chart Patterns Encyclopedia of Candlestick Charts Encyclopedia of Chart Patterns 2nd Edition Trading Classic Chart Patterns

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