CDL2CROWS (CDL2CROWS)

CDL2CROWS (Two Crows) is a bearish reversal candlestick pattern that appears during uptrends. The pattern consists of three candles: First, a long bullish candle continuing the uptrend. Second, a gap-up opening followed by a black candle that closes within the gap but still above the first candle's close. Third, another black candle that opens within the second candle's body and closes lower, ideally penetrating into the first candle's body. The pattern shows bulls losing control after the gap-up, with bears forcing two consecutive declines despite the initial bullish momentum.

Cryptocurrency traders use Two Crows as an early warning signal that an uptrend may be exhausting. The failed gap-up on the second candle reveals weakness, while the third candle confirms selling pressure. However, Two Crows is considered a weaker bearish signal compared to patterns like Three Black Crows, so confirmation is essential. Wait for the next candle to close below the pattern's low before entering shorts. Two Crows works best when it appears after extended rallies at resistance levels. Combine with RSI overbought conditions (>70), bearish divergence on MACD, or volume declining during the rally. The pattern is less common in volatile crypto markets but can signal profitable short entries when properly confirmed.