(Bearish)
Three Black Crows |
Characteristic of Candlesticks: Reversal
Relevance of Candlesticks: Bearish
Prior Trend of Candlesticks: Bullish
Reliability of Candlesticks : 3rd Grade
Confirmation of Candlesticks: Reliable
Candlestick Patterns Key Reference |
DESCRIPTION
(Bearish) Three Black Crows pattern indicate a strong reversal during an uptrend.
It consists of three long bearish candlesticks.
(Bearish) Three Black Crows pattern opening price of each candlesticks is higher than the previous candlestick's closing price which suggest a move to a short-term low.
PATTERN RECOGNITION
1. (Bearish) Three Black Crows pattern can be identified by an uptrend.
2. Refering to above diagram, we will see three long consecutive long bearish candlesticks.
3. Each candlesticks closes at new low.
4. Each candlesticks open within the body of the previous candlestick.
EXPLAINATION
The (Bearish) Three Black Crows pattern is identified that the market has been at a high price for too long and the market is approaching the top or already at the top.
A downward move is shown at the first long bearish candlestick.
The next two long bearish candlesticks show further decline in price due to profit taking by the buyers as the bull cannot be substained anymore.
The 3rd grade reversal patterns are reliable group of reversal patterns.
POINT TO NOTE
The opening price of the second and third candlesticks can be anywhere within the previous candlestick's body.
However it is better to see the opening prices below the middle of previous candlestick's body.
If the long bearish candlesticks are very extended, we must note of an oversold market.
The reliability of this pattern is very high, but still a confirmation on the fourth day is required to show that the uptrend has reversed in a form of a bearish candlestick which a lower close or a gap down is suggested.
CANDLESTICK PATTERNS KEY REFERENCE
Irrespective of Color (Can be bullish or bearish) |
Uptrend |
Consolidation |
Downtrend |
ANTICIPATED DIRECTION OF TREND
Lighter Arrow = Lower Probability
Solid Arrow = Higher Probability
More Likely to go sideway, Less likely to rally
|
More likely to rally, Less likely to go sideways
|
More likely to go sideway, Less likely to fall
|
More likely to fall, Less likely to go sideways |
