The Three Black Crows is a candle stick pattern that indicates a strong downward trend. It consists of three consecutive bearish candles with long lower shadows and small bodies. The “black” in the name refers to the fact that all three candles are bearish, or “black.” This pattern suggests that the bears are firmly in control of the market and that the price is likely to continue falling.
Since three black crows represent a visual pattern, recognizing this indicator doesn’t require any special mathematics. When the bears surpass the bulls in three straight trading sessions, the candlestick pattern is formed. They indicate the pattern on the price charts.
The bulls typically begin the trading session with the price opening slightly higher than the last close in the form of three black crows, but the price is pushed lower during the session. Under pressure from the bears, the price will ultimately close to the session low.
How to Identify the Three Black Crows
To identify the three black crows, you have to note the following;
- There should be an uptrend in progress,
- Three lengthy, bearish candlesticks must line up in a row,
- Every one of those candles needs to open smaller than it did the day before,
- It should open somewhere in the middle of the previous day’s pricing range,
- Three lengthy, bearish candlesticks must line up in a row,
- Every one of those candles needs to open smaller than it did the day before,
- It should open somewhere in the middle of the previous day’s pricing range,
- The candle should have a small (or no) lower wick.
