BEARISH UPSIDE GAP TWO CROWS PATTERN

BEARISH UPSIDE GAP TWO CROWS PATTERN:

The Bearish Upside Gap Two Crows Pattern is a three-candlestick pattern and it signals a top reversal. The first candlestick is a long white candlestick followed by a real body that gaps higher. Then another black real body appears, which opens above the second day’s open and closes under the second day’s close, completing the pattern

The market is in an uptrend and it displays a higher opening with a gap. However the new highs of the day cannot hold and the market forms a black candlestick. However the bulls still comfort themselves by the fact that the close on this black candlestick day is still above the prior day’s close. The third day however increases the bearish sentiment displaying another new high but failing to hold these highs until the close. Also the day closes below the prior day’s close, which is another bearish sign . So the following question becomes relevant. If the market is so strong, why the new highs fail to hold and why market closes lower? The answer is clear. Market is not now as strong as the bulls would like to believe.

The two black candlesticks of the pattern are the crows reminding ominous looking black crows atop a tree branch. Confirmation for the Bearish Upside Gap Two Crows Pattern may be mildly suggested. If in the fourth session prices fail to regain high ground, lower prices should be expected.