Three Black Crows candlestick pattern

The Three Black Crows pattern is a strong bearish reversal signal consisting of three consecutive bearish candlesticks. Each candlestick in the series closes at a lower price than the previous one, creating a pattern of lower highs and lower lows.

The opposite of the Three Black Crows pattern is the Three White Soldiers pattern. The Three Black Crows pattern triggers a bearish reversal, while the Three White Soldiers pattern - a bullish reversal. Both of them contain three candlesticks with almost the same body, but different colors: the Three Black Crows pattern - red candlesticks, the Three White Soldiers pattern - green candlesticks.

Construction

1st

• continuation of ongoing uptrend
• red body

2nd

• red body
• open price within 1st candlestick red body^①
• close price lower than low price of 1st red candlestick^②

3rd

• red body
• open price within 2nd candlestick red body^③
• close price lower than low price of 2nd red candlestick^④

The 2nd and 3rd candlesticks should have similar body sizes. If the 3rd candlestick is significantly smaller than the previous two, it suggests that the sellers are not fully in control and there may be a lack of seller activity.

These candles will have either short or nonexistent shadows. If you observe excessively elongated candlesticks that may indicate an oversold market.

Traders can take the help of volume and technical indicators to confirm the formation of this candlestick pattern.

It may also be a good opportunity for traders to take a short position after the formation of this bearish candlestick pattern (not trading advice).