As of 12/20/2024   Indus: 42,840 +498.02 +1.2%     Trans: 15,892 +32.54 +0.2%     Utils: 986 +14.76 +1.5%     Nasdaq: 19,573 +199.83 +1.0%     S&P 500: 5,931 +63.77 +1.1%	YTD  +13.7%   0.0%    +11.9%    +30.4%    +24.3%	Targets    Overview: 12/12/2024     44,200 or 41,750 by 01/01/2025   16,100 or 17,700 by 01/01/2025   1,050 or 975 by 01/01/2025   20,500 or 19,300 by 01/01/2025   6,100 or 5,775 by 01/01/2025
Chart Pattern Indicator: on 12/5/24

As of 12/20/2024   Indus: 42,840 +498.02 +1.2%     Trans: 15,892 +32.54 +0.2%     Utils: 986 +14.76 +1.5%     Nasdaq: 19,573 +199.83 +1.0%     S&P 500: 5,931 +63.77 +1.1%	YTD  +13.7%   0.0%    +11.9%    +30.4%    +24.3%
Targets    Overview: 12/12/2024     44,200 or 41,750 by 01/01/2025   16,100 or 17,700 by 01/01/2025   1,050 or 975 by 01/01/2025   20,500 or 19,300 by 01/01/2025   6,100 or 5,775 by 01/01/2025
Chart Pattern Indicator: on 12/5/24

Bulkowski on the Upside Gap Two Crows

Upside Gap Two Crows Candlestick: Summary

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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Upside Gap Two Crows Candlestick: Important Results

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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Upside Gap Two Crows Candlestick: Discussion

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.

Upside Gap Two Crows Candlestick: Identification Guidelines

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Upside Gap Two Crows Candlestick: 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. Upside gap two crows candles that appear within a third of the yearly high tend to act as continuations most often -- page 884.
2. Select tall candles for the best performance -- page 882.
3. Select upside gap two crows with breakouts that join the primary trend -- page 884.

Upside Gap Two Crows Candlestick: Example

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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See Also

• Remember to check out the two crows candlestick, too.
• Tall candles show support and resistance.
• Two candlestick tips could improve profitability.
• Candles near the yearly low perform best.
• Chart pattern breakouts: Which candlesticks appear most often the day before breakouts?
• Shadows. Do tall candle shadows predict price turns? Yes and no.
• Tall candles at peaks and valleys. Tall candles appear at turning points.

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