Definition
Three Black Crows is a bearish pattern of three consecutive long red candles, each opening within the previous body and closing lower. It shows sustained selling pressure and is most significant after an uptrend.
Formula
Three consecutive bearish candles; Each opens within previous body; Each closes at or near its low
Example
Three days of strong selling: $56→$53, $53→$50, $50→$47. Each candle opens within the prior body and closes near its low. Strong bearish signal.
FAQ
What is Three Black Crows?
Three consecutive long bearish candles signaling strong selling momentum.
How do you calculate Three Black Crows?
A common formula for Three Black Crows is: Three consecutive bearish candles; Each opens within previous body; Each closes at or near its low
Why is Three Black Crows important?
Three Black Crows helps investors evaluate candlestick patterns and make more informed decisions.