Three Black Crows

AAA

DEFINITION of 'Three Black Crows'

A bearish candlestick pattern that is used to predict the reversal of the current uptrend. This pattern consists of three consecutive long-bodied candlesticks that have closed lower than the previous day with each session's open occurring within the body of the previous candle.

Three Black Crows

INVESTOPEDIA EXPLAINS 'Three Black Crows'

As you can see from the chart above, the three black crows pattern is a sign of the bulls' lack of conviction in the current uptrend. This pattern is used to predict the top of an uptrend, but traders will want to confirm this signal with other technical indicators to confirm that the momentum is actually changing.

RELATED TERMS
  1. Real Body

    In candlestick charting this is the wide part of a candle that ...
  2. Bear

    An investor who believes that a particular security or market ...
  3. Momentum

    The rate of acceleration of a security's price or volume. The ...
  4. Reversal

    A change in the direction of a price trend. On a price chart, ...
  5. Uptrend

    Describes the price movement of a financial asset when the overall ...
  6. Candlestick

    A chart that displays the high, low, opening and closing prices ...
RELATED FAQS
  1. How do I build a profitable strategy when spotting a Three White Soldiers pattern?

    A profitable trading strategy can be implemented based on the strong market reversal signal given by the three white soldiers ... Read Full Answer >>
  2. How are Three Black Crows patterns interpreted by analysts and traders?

    The three black crows candlestick pattern is considered a relatively reliable bearish reversal pattern. Consisting of three ... Read Full Answer >>
  3. How effective is creating trade entries after spotting a Three Black Crows pattern?

    The three black crows pattern, like its bullish counterpart, the three white soldiers, is considered a reliable reversal ... Read Full Answer >>
  4. How do I implement a forex strategy when spotting a Three Black Crows Pattern?

    A common forex trading strategy implemented when a trader identifies the three black crows pattern is to sell short in accord ... Read Full Answer >>
  5. How are Three White Soldiers patterns interpreted by analysts and traders?

    The three white soldiers pattern and its bearish counterpart, the three black crows, are considered fairly robust reversal ... Read Full Answer >>
  6. How do I build a profitable strategy when spotting a Three Black Crows pattern?

    The three black crows candlestick pattern offers stock traders the opportunity to take advantage of a bearish market reversal ... Read Full Answer >>
  7. What do the different colored candlesticks mean?

    Candlestick charts have been used in Western trading for many years and are a very popular method of plotting the price action ... Read Full Answer >>
  8. What do you call a candlestick with no shadows, and what does it mean?

    A candlestick with no shadow is regarded as a strong signal of conviction by either buyers or sellers depending on whether ... Read Full Answer >>
Related Articles
  1. Active Trading

    Candlesticks And Oscillators For Successful Swing Trades

    Take advantage of short-term price moves by pinpointing reversals.
  2. Charts & Patterns

    Heikin-Ashi: A Better Candlestick

    Enhance trend isolation and prediction of future prices with this technique.
  3. Chart Advisor

    These REITs Are Looking Good Right Now

    These REITs are in strong uptrends and looking to go higher.
  4. Chart Advisor

    Commodity Traders are Watching These 3 Charts

    As we head towards the summer months, many commodity traders are looking to diversify their holdings and to protect themselves against inflation.
  5. Trading Strategies

    Analyzing The Market With Trend Mirrors

    Past price action can exert a powerful influence on current rallies and selloffs.
  6. Technical Indicators

    Reading Trends With Moving Average Ribbons

    Moving average ribbons reveal subtle relationships between price, time and trend.
  7. Chart Advisor

    The Stock Market's Uptrend Is Set To Continue

    The most common debate amongst traders is when the prolonged uptrend across the financial markets will come to an end.
  8. Charts & Patterns

    Should Investors Get Into Oil Now?

    Oil has enjoyed a steady climb after a violent plunge. Where is it going next, and how can investors profit?
  9. Chart Advisor

    Swing Trading Stocks to Buy Now

    These stocks are set for another move higher, and are worth looking at for a possible buy.
  10. Chart Advisor

    Trade Strong Trends in Financials with this ETF

    The strong move on the chart of the XBE ETF suggests that now could be the ideal time for traders to look for niche stocks to ride the upward momentum.

You May Also Like

Hot Definitions
  1. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  2. Productivity

    An economic measure of output per unit of input. Inputs include labor and capital, while output is typically measured in ...
  3. Variance

    The spread between numbers in a data set, measuring Variance is calculated by taking the differences between each number ...
  4. Terminal Value - TV

    The value of a bond at maturity, or of an asset at a specified, future valuation date, taking into account factors such as ...
  5. Rule Of 70

    A way to estimate the number of years it takes for a certain variable to double. The rule of 70 states that in order to estimate ...
  6. Risk Premium

    The return in excess of the risk-free rate of return that an investment is expected to yield. An asset's risk premium is ...
Trading Center