Three Black Crows
Quick Definition
A bearish reversal candlestick pattern consisting of three consecutive long-bodied bearish candles that close progressively lower.
Key Takeaways
- Three consecutive long-bodied bearish candles, each closing progressively lower
- Each candle opens within the previous candle's body and closes at or near its low
- Most reliable at the top of uptrends or at key resistance levels
- Increasing volume across the three candles strengthens the bearish signal
What Is Three Black Crows?
Three Black Crows is a bearish reversal candlestick pattern that consists of three consecutive long-bodied red (or black) candles, each opening within the body of the previous candle and closing at or near its low. This pattern typically appears at the top of an uptrend or after a period of consolidation and signals a strong shift in momentum from buyers to sellers. Each candle should have a relatively long body with short or no lower shadows, indicating that sellers maintained control throughout each session with minimal buying pressure. The pattern is considered more reliable when: the first candle closes below a significant support level or moving average, volume increases across the three candles, and the bodies are of similar size. The bearish equivalent of "Three White Soldiers," Three Black Crows represent sustained, aggressive selling over three periods. Traders often wait for confirmation on the fourth candle or look for the pattern at key resistance levels to increase reliability. False signals can occur in strong uptrends where the pattern may represent only a temporary pullback.
Three Black Crows Example
- 1After a stock hits $80 resistance, three consecutive long red candles form, each closing lower — dropping from $80 to $78 to $75 to $72 — confirming a bearish reversal.
- 2Three Black Crows appear on increasing volume after an earnings miss, signaling that institutional sellers are aggressively exiting positions.
Related Terms
Three White Soldiers
A bullish reversal candlestick pattern consisting of three consecutive long-bodied bullish candles that close progressively higher.
Evening Star
A bearish three-candle reversal pattern consisting of a large bullish candle, a small-bodied candle that gaps up, and a large bearish candle that closes well into the first candle's body.
Bearish Divergence
A technical signal that occurs when price makes a new high while an indicator (such as RSI or MACD) makes a lower high, suggesting weakening upward momentum and a potential reversal.
Candlestick Chart
A chart type showing open, high, low, and close prices for each period, with color-coded bodies indicating direction.
Moving Average
A calculation that averages a security's price over a specific number of periods, smoothing price data to identify trends.
Relative Strength Index (RSI)
A momentum indicator measuring the speed and magnitude of price changes on a 0-100 scale, used to identify overbought or oversold conditions.
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