The Ultimate Guide to Three Black Crows Candlestick Patterns
Last updated: January 4, 2024
Three Black Crows Pattern
The three black crows candlestick pattern is a series of three candlesticks, where each of the three candlesticks consecutively declines to lower prices:
Chart
General Identification & Interpretation
Steve Nison is credited with bringing Japanese candlestick charting to the West. In his book "Japanese Candlestick Charting Techniques" he describes there black crows patterns with the following characteristics:
Typical characteristics
A series of three red candlesticks, each declining in price
Each of the candles closes lower than the previous candle, and ideally closes at or near their lows for the day
The second and third candles ideally open within the body of their preceding candle
Examples of use as a trading indicator
Although this is a bearish indicator, the stock likely will have already sold off substantially by the time this pattern has completed.
This pattern has the potential to forshadow further losses if it's seen after a bullish advance in stock price or at stock price highs.
Other interpretations
This pattern is also known by other names, such as the three-winged crows pattern.
More for beginners
Check out our quick start guide to candlestick charting for more information if you are new to candlestick charting!
