• An upward two-crow gap is a three-candle pattern that signals slowing momentum in an uptrend, which may herald a downward reversal.

  • The pattern occurs in an uptrend, starting with a large up candle, gapping above the down candle, and then a larger down candle that engulfs the previous one.
  • Reversal below is not provided. The price may move sideways or rise following the pattern.
  • Some traders wait for “confirmation” before acting. This means waiting for the price to fall below the low of the third candle before selling or going short.