Courtesy of MarketTamer
- Three Black Crows appears after a strong uptrend and the sellers begin to step in with a dark candle.
- The initial dark candle is followed by two more dark candles with each day’s open inside the trading range of the previous day and then closing near the low of the day.
- The fact that there is early buying each session is evidence that the bulls are still fighting to move the stock higher yet the new trend has begun as the bears overwhelm the bulls and push the stock lower each day.
- The nature of the trend exhibits more balanced market action as opposed to a vicious selloff which can create an oversold condition; because of that, the move should be stronger and more sustainable.
- Three Black Crows is a bearish reversal pattern that can begin with a Dark Cloud Cover or a Bearish Engulfing Pattern but needs follow through with two additional bearish candle.
- The pattern is strengthened when accompanied by increasing volume.
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