Two Crows Pattern – Bearish Reversal
Advanced lesson on the Two Crows candlestick pattern: identification, trading strategy, and common mistakes.
Mark · Trader & Founder, Social Forex
Definition
The Two Crows pattern is a bearish reversal candlestick formation consisting of three candles, appearing at the peak of an uptrend. The first candle is a long bullish (green) candle, indicating strong upward momentum. The second candle opens with a gap above the first candle's close but closes lower, forming a bearish (red) 'crow.' The third candle opens higher than the second candle's open but closes lower than the second candle's close, creating the second 'crow.' Ideally, the third candle closes below the second candle's close.
How to Identify
How to Trade
Entry: After candle 3 closes, sell at the open of candle 3. Alternatively, wait for a fourth bearish candle for confirmation.
Stop loss: Place above the high of candle 1 (or the pattern's highest high) plus spread.
Take profit: Target the nearest support level (SMC: liquidity zone, old FVG, or Order Block). Use Fibonacci retracement from the swing low to high, TP at 50% or 61.8%.
Real Example
On the H4 chart of EUR/USD, after a strong bullish rally, a Two Crows pattern appeared with surging volume. A trader sold after the third candle, set SL above the pattern's high, and TP at a support zone (old Order Block). The pair dropped over 100 pips.
Common Mistakes
*Comparison: The Evening Star also is a 3-candle bearish reversal, but its second candle is a doji/small candle, not a red one. Two Crows is stronger due to two consecutive bearish candles.*
Content is for reference only, not investment advice. Forex trading carries high risk.
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