Three Black Crows Pattern: A Strong Bearish Reversal Signal
What is the Three Black Crows Pattern?
The Three Black Crows is a three-candle bearish reversal pattern that appears after an uptrend, signalling a strong shift from buying momentum to selling pressure.
First Candle – Momentum Weakens
A strong bearish candle forms after an uptrend, indicating that sellers are beginning to gain control of price action.
Second & Third Candles – Sustained Selling Pressure
Two consecutive bearish candles follow, each closing lower than the previous one. This reflects increasing market pessimism and strong downward momentum.
The Three Black Crows pattern is considered a highly reliable bearish reversal signal, especially when the candles have strong bodies and small lower shadows.
Confirmation & Volume
Traders typically look for continued price decline after the pattern. Rising trading volume during the formation strengthens the bearish confirmation.