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Three Black Crows

Three consecutive large bearish candles each closing near their low — sustained selling pressure — a powerful downtrend initiation signal.

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Three Black Crows is the bearish counterpart to Three White Soldiers. Three consecutive long bearish candles each open within the prior candle's body and close at or near the session low. Small or absent upper wicks confirm minimal recovery attempts.

After a sustained uptrend, Three Black Crows signals that sellers are in complete control over multiple sessions. The absence of meaningful bounces shows buyers have capitulated. Most reliable at a market top or major resistance zone, with increasing volume across the pattern.

Example

After an extended uptrend, a stock forms Three Black Crows at all-time highs. Each day opens inside the prior body and closes lower with no meaningful wick. Volume escalates. Longs exit; shorts initiate with stops above the first crow's high.

#bearish#reversal#three-candle

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