The pattern is formed when the open price of the second black candle is above the open price of the first black candle and the close price is below the close price of the first black candle. There should be a gap between white and black candles. The third candle should open above the second one and engulf it.
Like other bearish formations, the Upside Gap Two Crows starts with a white candle. The next day, trading opens with a gap up, but the price does not grow and closes below the open level, forming a black candle.
The next session is opened higher, but then the price falls and closes below the preceding close level. The close price is still higher than the close price of the first white day. At this moment, bullish sentiment fades away.
The Upside Gap Two Crows pattern is rather strict. In case the price closes inside the body of the white candle on the second black day, the formation became the Two Crows.
The pattern may be brought to a single candle, the white body of which is longer than the white body of the first day, just like the upward shadow.
Before taking any steps based on this formation, wait for its confirmation as the pattern is not completely bearish.
The Upside Gap Two Crows differs from the Mat Hold Pattern by the fact that the black body of the third day cannot open below the open price of the second day and stay above the body of the first day within the Upside Gap Two Crows. Two first days of the formation could become the Evening Star depending on what happens on the third day.