Three Black Crows


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

BREAKING DOWN '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.

  1. Bear

    An investor who believes that a particular security or market ...
  2. Real Body

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

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