Upside Gap Two Crows

If you see two crows hanging upside down on a wire, with a gap between them, Alfred Hitchcock said that means a bearish market reversal is coming.

Eh, okay. Al didn’t say that, and you won’t find any bat-like crows. We’re talking candlestick charts here.

The upside gap two crows takes three days to see. Day one is a long white candlestick, with the pulls pushing uphill. Day two is a short black candlestick, with bears pushing downhill. Day three shows the security opening higher than the second day’s opening price, and closing lower than the second day’s closing price...more bears...a big black candlestick with a higher high and a lower low than the day two bears managed.

This chart pattern is interpreted as a bearish reversal: the beginning of a potential downward trend. The bulls losing to the stronger bears. The upside gap two crows is pretty rare, and it could either represent plateauing, or the top of a peak, about to drop...like some crows in a Hitchcock movie.