Three black crows is a nickname given to a bearish reversal pattern on a candlestick chart where three consecutive candlesticks open in the body of the previous candle and close below the previous candle’s close. Three black crows is believed to signal the end of an uptrend and the beginning of a downtrend.
In the traditional black and white candlestick charting, candles that close below their open are colored in black. Three consecutive black candles can mean bad news for the bulls or anyone else riding the uptrend, so they were nicknamed three black crows. The three black crows should ideally have a longer body that closes at or near the low. A long wick to the downside is even better, as it means lower lows were touched before the candle close. The three black crows can be used as a signal on any time frame, but formation is seen as much more meaningful on longer time frames.
Read More »
Home | Advertising Info | About | Contact Us
Janalta Interactive Sites: