Candlestick Handbook

Page 22 of the handbook, two candles

One Black Crow

Signal
Bearish reversal
Candles
2
Best found
In an uptrend

What has to be true

  • A green candle in an uptrend
  • Next candle gaps down
  • It closes below the green candle's open

This reversal pattern starts with a green candle in an uptrend, followed by a gap down, with sellers maintaining control and closing below the green candle's open.

This pattern is significant for a few reasons. The initial gap down indicates a strong and sudden change in sentiment from the previous candle.

Price pushing lower throughout the day and closing below the previous day's open is additional confirmation (combined with the gap down) that the trend may be reversing.

SPXDaily
Ready

Building the chart
The pattern forms
Checking the setup
What happened next
SPX, October 2023A gap down after a green day, and sellers hold control into a close below its open.Exchange data