As of 04/19/2024
Indus: 37,986 +211.02 +0.6%
Trans: 15,084 +136.79 +0.9%
Utils: 876 +15.31 +1.8%
Nasdaq: 15,282 -319.49 -2.0%
S&P 500: 4,967 -43.89 -0.9%
|
YTD
+0.8%
-5.1%
-0.7%
+1.8%
+4.1%
|
 39,800 or 37,150 by 05/01/202416,200 or 15,000 by 05/01/2024885 or 850 by 05/01/202416,700 or 15,800 by 05/01/20245,250 or 5,025 by 05/01/2024 |
As of 04/19/2024
Indus: 37,986 +211.02 +0.6%
Trans: 15,084 +136.79 +0.9%
Utils: 876 +15.31 +1.8%
Nasdaq: 15,282 -319.49 -2.0%
S&P 500: 4,967 -43.89 -0.9%
|
YTD
+0.8%
-5.1%
-0.7%
+1.8%
+4.1%
| |
|
39,800 or 37,150 by 05/01/202416,200 or 15,000 by 05/01/2024885 or 850 by 05/01/202416,700 or 15,800 by 05/01/20245,250 or 5,025 by 05/01/2024 | ||
The upside gap two crows candlestick pattern is supposed to be a bearish reversal, but testing shows it is a weak bullish continuation pattern. It has a frequency rank of 75 out of 103 patterns where 1 is the most popular. Thus, you should be able to find this pattern if you look hard enough, but why bother? The overall performance is well down the list, so it has no appeal unless you like losing money.
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My book,
Encyclopedia of Candlestick Charts
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Theoretical performance: Bearish reversal
Tested performance: bullish continuation 60% of the time
Frequency rank: 75
Overall performance rank: 74
Best percentage meeting price target: 45% (bear market, down breakout)
Best average move in 10 days: -5.50% (bear market, down breakout)
Best 10-day performance rank: 22 (bull market, down 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. |
 Upside Gap Two Crows
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The upside gap two crows candlestick is supposed to be a bearish reversal, but testing shows that it acts as a bullish continuation 60% of the time. The overall performance rank is 74 where 1 is the best out of 103 candle types. Thus, it does not work as expected and when it does work the price move is often lousy.
The best average move 10 days after the breakout is a drop of 5.5% in a bear market. I consider moves of 6% or higher to be worthwhile, so this comes close. The best 10-day performance rank is 22 after a downward breakout in a bull market. However, the drop averages just 3.64%, so my guess is the bull market/down breakout combination is a weak category among all candlesticks.
| Characteristic | Discussion |
| Number of candle lines | Three. |
| Price trend leading to the pattern | Upward. |
| Configuration | Look for a tall white candle in an upward price trend. Then find a black candle with a body gapping above the prior candle's body. The last day is another black candle that engulfs the body of the middle day with a close that remains above the close of the first candle. |
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.
The chart shows an upside gap two crows candle pattern circled in red on the daily scale. Price trends upward leading to the start of the candle. Then a tall white candle appears. The next day, a black candle gaps higher and the body remains above the white candle's body. The last day is a black candle that engulfs the body of the prior day. That means the top of the body is above the prior open and the bottom of the body is below the prior close.
This upside gap two crows candlestick appears in an upward price trend, and it has an upward breakout. Thus the candlestick is a bullish continuation of the primary trend.
I found that the best setups for this candle pattern are those in which the breakout direction joins the primary price trend. In this example, the primary trend is upward and so is the breakout. Downward primary trends with downward breakouts also do well, so look to trade those, too.
-- Thomas Bulkowski
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