- Three Black Crows
The three Black Crows pattern is the opposite of the Three White Soldiers pattern.
The Three Black Crows pattern consists of three red candles, which are consistently reduced. The opening price of each next candle is within the body of the previous candle.
If the body of the first red candle in the pattern is below the high of the green candle that precedes the Three Black Crows, this amplifies the signal.
Typically, Three Black Crows indicates that the trend has reversed and the price will fall after rising.
Please note: you can enter the market using this pattern only if Three Black Crows formed after an uptrend.