Skip to content
CoinChartist

CoinChartist

Your Future Charts Here

Buy the CoinChartist Crypto Trading Journal, now available at Amazon.
Primary Menu
  • Featured
  • Japanese Candlesticks
  • Chart Patterns
  • Technical Indicators & Oscillators
  • Home
  • Education
  • Japanese Candlesticks
  • Three Black Crows
  • Bearish Candlestick Patterns
  • Japanese Candlesticks

Three Black Crows

Three Black Crows is a bearish Japanese candlestick pattern. Learn how to identify and trade the Three Black Crows pattern.
2 min read
600 views
Three black crows Japanese candlestick pattern crypto
  • Sentiment: Bearish
  • No. of candles: 3
  • Direction: Reversal

What Is The Three Black Crows Japanese Candlestick Pattern?

The Three Black Crows pattern is a bearish reversal pattern that typically forms after an uptrend.

The Japanese candlestick pattern consists of three long black (bearish) candles that close at or near the day’s low.

Each candle should open within the real body of the previous candle, creating a visual pattern of three black crows in a row.

What Is The Psychology Behind The Three Black Crows Pattern?

The Three Black Crows pattern reflects a strong shift in market sentiment from bullish to bearish.

During the period of the first black candle, sellers start to enter the market and push the price lower.

This selling pressure continues during the periods of the second and third candles, resulting in a strong bearish trend.

The fact that each candle opens within the previous candle’s real body indicates a lack of buying pressure, with sellers taking control and pushing the price lower.

Auto Amazon Links: No products found.

How To Trade The Three Black Crows Reversal Pattern?

To trade the Three Black Crows pattern, wait for confirmation by a subsequent bearish candle or another technical indicator.

The sell trigger occurs when the price moves and closes below the low of the third black candle, confirming the pattern.

Place a stop loss order above the high of the third black candle to protect against potential false breakouts or reversals.

As the price moves in your favor, consider using trailing stops or other risk management techniques to lock in profits and minimize potential losses.

Additional Tips

While the Three Black Crows pattern can be a reliable bearish reversal signal, it is essential to use it in conjunction with other technical indicators and chart patterns to confirm the trend change.

Additionally, be aware of the overall market context and consider factors such as support and resistance levels, as well as the strength of the prevailing trend.

Keep in mind that no single pattern can guarantee a trend reversal, and proper risk management is always necessary.

Continue to learn about Japanese candlesticks through books, such as Steve Nison’s  “Japanese Candlestick Charting Techniques” and “Beyond Candlesticks.” 

FacebookTweetPin

Related

  • Bearish Candlestick Patterns
  • Japanese Candlesticks

Continue Reading

Previous: Evening Star
Next: Three Inside Down

Author's Other Posts

What Are Trends in Crypto? How to Identify and Trade Different Types of Crypto Trends Crypto trends how to identify

What Are Trends in Crypto? How to Identify and Trade Different Types of Crypto Trends

Bollinger Bands Bollinger Bands

Bollinger Bands

Moving Average Convergence/Divergence (MACD) Macd movin* average convergence divergence

Moving Average Convergence/Divergence (MACD)

Relative Strength Index (RSI) Relative strength index

Relative Strength Index (RSI)

Recent Posts

  • What Are Trends in Crypto? How to Identify and Trade Different Types of Crypto Trends
  • Bollinger Bands
  • Moving Average Convergence/Divergence (MACD)
  • Relative Strength Index (RSI)
  • Hurst Cycle Theory: Understanding Bitcoin Cycles
  • About
  • Affiliate Disclosure
  • Privacy Policy
  • Terms & Conditions
  • Featured
  • Japanese Candlesticks
  • Chart Patterns
  • Technical Indicators & Oscillators
Copyright CoinChartist.io © All rights reserved.