Two Crows Candlestick Pattern
We will discuss in this article one of the most important and most frequently appearing chart patterns, whether in stock markets or in the forex and indices markets. Developing a deep understanding of each pattern individually gives you the ability to read the market more clearly, helps you choose your trades with greater confidence, and puts you on the right track toward building a successful and consistent trading strategy.
This pattern is not just a repeated shape on the chart; it is a direct reflection of market psychology and the ongoing battle between buyers and sellers. Therefore, knowing the conditions required for the pattern to form, the areas where it commonly appears, and the psychological reasons behind its formation are essential elements for understanding it correctly.
So, what are the conditions needed for this pattern to form?
In which areas on the chart does it usually appear?
What is the psychology behind its repetition?
And the most important question: how can we trade this pattern professionally to achieve the best possible results?
We will answer all these questions in detail, explaining how to use this pattern effectively in market analysis and how to enter precise, high-probability trades.
It is a pattern that appears in resistance areas to reverse the market from an uptrend to a downtrend. The pattern consists of three candlesticks. There is a gap between the first and second candle, meaning there is a distance between the closing price of the first candle and the opening price of the second candle. The third candle must open inside the body of the second candle and close inside the body of the first candle, and these conditions are essential for the validity of the pattern. The psychology behind this pattern is simple: after the first bullish candle forms, the second candle opens with a gap above it, showing strong buying pressure. However, it quickly turns bearish because sellers absorb all the buying orders and overpower buyers who can no longer push the price higher. The sellers then confirm their control with a third bearish candle that drops and closes inside the body of the first candle. How do we trade this pattern?
When the pattern appears in a resistance area, we enter a sell trade immediately after the pattern is fully formed. The stop loss is placed above the pattern, and the targets are set as shown on the chart, with a value equal to three times the stop loss in order to achieve the best risk-to-reward ratio.
