Upside Gap Two Crows

The Upside Gap Two Crows is a three-candle bearish reversal pattern that appears after a strong uptrend. The pattern consists of: a strong bullish candle (first candle, confirming the uptrend), followed by a bearish candle that opens with an upside gap above the first candle's close but closes within its own range (second candle — the first crow), and completed by a second bearish candle that opens above the close of the second candle but closes within the body of the first bullish candle — effectively closing the gap and filling part of the first candle (third candle — the second crow). The two consecutive bearish candles that fail to hold the gap and gradually fill the prior bullish candle signal deteriorating buying conviction and growing selling pressure. In Indian equity markets, the Upside Gap Two Crows is considered a warning sign when it appears at key resistance levels or after a significant price run-up, suggesting that the gap-up extension was not sustainable and that distribution by early buyers may be occurring — a potential entry point for short sellers with a stop above the high of the second candle.