Serial Candlestick: Three Black Crows
The Three Black Crows pattern is the opposite of the Three White Soldiers pattern. Three Black Crows pattern is a bearish trend reversal pattern. This pattern consists of three bearish candlesticks that give bad connotation and dark color, hence it is called Three Black Crows. This pattern is included in a moderate trend reversal pattern that should be considered when it comes in a rally or a long uptrend. The Three Black Crows pattern usually indicates a weakening in the uptrend that is occurring and potentially the initial emergence of the descending trend.
Each of the three candlesticks in the Three Black Crows pattern must be a relatively long bearish candlestick with each candlestick closed at or near the low price for that period. Each successive candlestick should mark a stable price movement and should not have a long shadow or long axis. We recommend that every candle in this pattern should have an open level in the real body candlestick beforehand in this pattern but this is not an important requirement.
If this pattern appears in an ascending trend, this indicates potential for a trend weakening and a possible trend reversal (reversal). However, if the three candles above move down or make significant price reductions, then you may need to be alert of oversold conditions.
Unlike in the Three White Soldiers pattern that resembles the other patterns of Advanced Block and Stalled patterns. The similarity is that these three patterns are equally composed of three brightly colored candles (bullish). While the Three Black Crows have in common with the pattern of Advanced Block and Stalled pattern because of its emergence when there is an uptrend. But it also has the difference that the pattern of Three Black Crows has a third form of the candlenya is dark (bearish).
These five patterns are a moderate pattern, meaning to be considered to setup according to their respective functions.