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Bearish Two Crows

From , former About.com Guide

Bearish Two Crows

Bearish Two Crows

The bearish two crows (niwa garasu) candlestick pattern (view full size chart) is one of the triple candlestick patterns (i.e. it consists of three individual candlesticks), and it is a bearish pattern.

The bearish two crows candlestick consists of an upward candlestick (i.e. a green candlestick), followed by a smaller downward candlestick (i.e. a red candlestick), that opens and closes above the close of the first candlestick (i.e. a gap up that does not close), followed by a larger downward candlestick (i.e. another red candlestick), that opens above the close of the second candlestick (i.e. another gap up), and closes below the close of the first candlestick. Note that the third candlestick closing below the close of the first candlestick is the feature that differentiates the two crows from the upside gap two crows candlestick pattern.

Use In Trading

The bearish two crows pattern can occur in a number of different contexts (e.g. at the beginning of a trend, during a trend, at the end of a trend, etc.), but it is most relevant when it occurs during a significant upward trend. The bearish two crows pattern is a bearish pattern, and can be used as an indication of the end of an upward trend. The bearish two crows pattern is a somewhat complicated candlestick pattern, but once the important elements of the pattern are understood (e.g. the third candlestick closing below the close of the first candlestick), the pattern is relatively easy to identify on a price chart, and the pattern can provide a useful indication of upcoming price movement.

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