P
PipsGrowth

Key Takeaways

Success Rate:80%
Difficulty:Beginner
Strength:
R:R Ratio:1:3
šŸ¦…

Three Black Crows

bearish reversalVery High Reliability3 Candles

Three consecutive long bearish candles, each opening within the previous body and closing progressively lower.

Market Psychology

Persistent selling pressure over three sessions indicates strong bearish conviction.

Candle Structure

1st2nd3rd

Trading Setup Example

Entry, stop loss, and take profit levels.

How to Trade the Three Black Crows PatternTake ProfitšŸ“„ EntryStop LossPatternConfirmEnterSELLPatternConfirmEnterSL/TP

Always wait for pattern confirmation before entering a trade.

Where This Pattern Appears

Trend context and market position.

UptrendThree Black CrowsReversal ↓

Appears at the top of an uptrend, signals bearish reversal.

How to Identify

1

Three consecutive bearish candles with long bodies

2

Each opens within the previous candle body

3

Each closes lower than the previous

4

Little or no lower shadows

Confirmation Signals

RSI overbought (>70)
At key resistance
Volume spike
Bearish next candle

Trading Strategy

šŸ“„ Entry

Enter short after third candle or on pullback

šŸ›‘ Stop Loss

Place stop above the first candle high

šŸŽÆ Take Profit

Trail stops or target major support levels

āš–ļø Risk/Reward

1:3

Common Mistakes to Avoid

Trading without prior uptrend
Not waiting for confirmation
Ignoring volume
Fighting strong trend

Pro Tips

šŸ’”Long lower shadows may indicate buying interest
šŸ’”If candles become progressively smaller, selling pressure may be fading
šŸ’”Watch for oversold conditions after this pattern

Best Timeframes

DailyWeekly

Pattern Variations

At resistance level (stronger)
With gap open
Last updated: December 29, 2024

Educational Disclaimer

This content is for educational purposes only and does not constitute financial or investment advice. Trading involves significant risk and you may lose your capital. Always consult a licensed financial advisor before making investment decisions.

Frequently Asked Questions