In this article we will examine the relationship between the always at odds bull and bear and what the appearance of the ominous upside gap two crows means to each. When the upside gap two crows candlestick pattern appears on the chart of traders, bulls should consider this as an omen that change is possibly on the horizon and complacency could be disastrous. Bears will often begin to sharpen their claws in preparation of a what could likely be a newly discovered hunting ground.

The upside gap two crows pattern is a highly reliable indictor that a top has been reached after an uptrend and the possibility of a reversal may be in the cards. In order for the upside gap two crows to form, three candlesticks are required to complete the pattern. The first of which is a long white candle that is characteristic of a current uptrend. The second candle gaps up at the opening of the trading session although by the close, bulls are unable to maintain momentum and the candlestick is pushed down below where it opened.

Although the session closed lower than the opening, bulls find comfort in the fact that the session did not close below the previous days candle. On the third day the bulls try to regain control and even push this candle to new highs but are unable to maintain buying pressure and once again the bears push the candlestick lower, closing below the previous days closing mark.

Bearish sentiment has overtaken the former uptrend and the previously complacent bulls are now realizing that the market was not quite as strong as once thought. The upside gap two crows candlestick pattern is considered a reversal pattern often appearing at market tops as an uptrend reaches a point of exhaustion. Japanese candlestick charts are widely used in all of the financial markets including stocks, options, futures and forex with great success. Combined with other indicators and oscillators, candlestick charts form the bedrock of many types of trading systems.