The Three Black Crows Candlestick Pattern
Introduction
The Three Black Crows candlestick pattern is composed of three bearish candlesticks and occurs after an uptrend. It is used by traders to identify the top of an uptrend and a reversal into a downtrend.
In this article you will learn:
- What is a Three Black Crows candlestick pattern
- How to identify and interpret a Three Black Crows candlestick pattern
- Trading techniques after confirming a Three Black Crows candlestick pattern
Our Latest Three Black Crows Stock Alert
What is a Three Black Crows candlestick pattern?
The Three Black Crows is a candlestick pattern that is composed of a three bearish candlesticks, as the title suggests. It occurs during an uptrend, and may indicate the top of the uptrend. Because each candlestick closes lower than the previous trading session, in addition to closing lower that day, it indicates that sellers have taken control of the stock.
How to Identify a Three Black Crows Candlestick Pattern
The Three Black Crows candlestick patterns consists of three bearish candlesticks, with each candlestick closing lower than the previous trading session. Each candlestick must also close open, and should ideally open near the middle of the body of the previous trading period. Because the Three Black Crows candlestick pattern occurs in an uptrend, our suggestion is to look at the previous 3 trading periods to verify the uptrend.
Trading Techniques for the Three Black Crows Candlestick Pattern
It is recommended to wait one trading day to confirm the Three Black Crows candlestick pattern. If the following day closes lower, this could mean a reversal in the stock and could indicate a potential bearish entry point. However, if the following day closes higher and is bullish then it may indicate that the pattern has failed and one should use caution when attempting to short the stock.
