Two Crows Pattern

Two Crows is one of the commonly used candlestick patterns in quantitative trading, representing a bearish reversal pattern.

Calculation Principle

Two Crows pattern is identified by the following conditions:

1. First day: A long bullish candle
2. Second day: A bearish candle with open above the first day's close
3. Third day: A bearish candle with open above the second day's open
4. Third day's close is below the second day's close
5. Third day's body is completely within the second day's body

Parameter Description

• Input Parameters:
  • Open: Opening price
  • High: Highest price
  • Low: Lowest price
  • Close: Closing price
• Parameters:
  • penetration: Body penetration ratio (default: 0)

Usage Recommendations

1. Use in combination with other technical indicators
2. Pay attention to the overall market trend
3. Monitor volume confirmation
4. Set reasonable stop-loss levels
5. Watch for false breakouts

Notes

• Ensure data quality
• Pay attention to pattern completeness
• Consider market environment
• Watch for false signals
• Combine with fundamental analysis
• Pay attention to risk control
• Regularly evaluate strategy effectiveness
• Optimize parameters