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A powerful bearish reversal pattern consisting of three consecutive long-bodied bearish candles, each opening within the previous body and closing at progressively lower lows.
Three Black Crows is a three-candle bearish reversal pattern that appears at the top of an uptrend. It consists of three consecutive long-bodied bearish (red/black) candles, each opening within or near the body of the previous candle and closing at progressively lower lows.
The pattern gets its name from the ominous image of three crows perched on a tree - a traditional symbol of bad news. Each "crow" represents a session where sellers took decisive control, creating a stair-step decline of lower prices.
Three Black Crows tells a story of sustained seller conviction over multiple sessions. Unlike single-candle reversals that can be anomalies, this pattern shows that sellers are not just stepping in - they're dominating for three consecutive periods.
Day one: After an uptrend, sellers emerge and push price significantly lower. Day two: Instead of a bounce, sellers return with the same or greater force, opening within the previous body and closing at new lows. Day three: The same pattern repeats, confirming that momentum has decisively shifted.
The small lower wicks show buyers are unable to push back meaningfully. The consecutive lower closes demonstrate growing fear. This combination sends a powerful message: the bulls have lost control, and a new bearish trend may be beginning.
Conservative: Enter short on a bounce to the midpoint of the third candle body.
Aggressive: Enter short on the close of the third candle or on break below its low.
Place stop above the high of the first crow. This is the origin of the reversal - if price returns there, the pattern has failed.
T1: Previous swing low or nearest support level. T2: Measured move equal to the pattern's height projected downward. T3: Use trailing stop for trend continuation.
Minimum 1:2 R:R required. Bounce entries typically offer better R:R than breakdown entries.
Three Black Crows is most powerful when it appears after a clear uptrend at a key resistance level. The context determines whether it's a high-probability reversal or a potential trap.
Check if each crow opens within the body of the previous candle. If they gap down instead, the selling pressure is even more intense.
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