Two-Crow Gap

This option uses a mix of positive and negative trends. The stock goes up in value at the start of this trend that lasts for three days, but at this point, the stock is going to decline.

1. While the stock moves upward, one stick will feature a long body but with the upper shadow being small in size.
2. The second stick is higher than the first one, but it is going down in value.
3. The third stick fully covers the body of the second one. The third is also declining in value. It does not have the cover the first stick, but it should not have much of a downward shadow.

It is best to enter a position during the third day of the upside gap two crows pattern. The second day might be a slight aberration. It is the third day that proves when something is going to happen and the stock is going to head in a certain position.

Each of these trends that you will find on a candlestick chart is distinguished and easy to notice. Be certain when looking at these trends that you know what to expect from them and that you have a good plan in hand for trading your stock.