Unlocking opportunities in Metal and Mining
Two crows is a bearish reversal pattern. In this pattern, during an uptrend, after opening gap-up, market closes lower. Next day, a black candle occurs, which fills the gap, and thus Two Crows pattern is formed. The pattern is an indicator of eroding uptrend and a warning about a possible reversal in trend.
In this pattern, first candle is a long white candle, closing near its high. Second candle is a small black candle, which gaps away from the previous days close, and finishes near its low, which is still above the high of the first candle. Last candle opens inside the body of the second candle, and fills the gap between the first and second candle.
Strategy: Short positions can be initiated post successful breaking of low of third candle.