What it looks like
Three down candles in a row with long bodies and small wicks. Each opens inside the body of the candle before and closes at a new low, near the bottom of its own range. The bodies should be similar in size or growing. The pattern's high is the first candle's high and its middle is halfway between its high and low.
What it means
Sellers were in charge from start to finish with no fight back, three candles running. That is real pressure, and it often carries on for a few candles. Late in a long fall, though, it is often the last push before a bounce.
How to trade it
- 1
Check where it formed. Early in a move, such as just after a break below a floor, it counts. At the end of a long fall, do not chase it.
- 2
Wait for a small pullback rather than selling the third candle's close.
- 3
Sell the pullback, for example on the US30 15 minute chart where the crows span 90 points and price bounces 25 points before turning down.
- 4
Put the stop above the pattern's high.
- 5
Target the next swing low or 2 times the stop.
A close back above the middle of the pattern.
Where it works best
Early in a new fall, right after price breaks below a range or a floor, on 15 minute and higher charts.
WickSpeak finds three black crows automatically on any chart and names them on the candles that made them. Next to the name it writes what the pattern is, how to trade it and what proves it wrong, in plain English. In Playbook you can use three black crows, or any of the 146 patterns, as a condition alongside up to 12 conditions on any of 12 timeframes, then backtest it on past candles with your own costs.
Common mistakes
- Selling the bottom of the third candle after a long fall.
- Missing shrinking bodies with long lower wicks, which is a descent block, not crows.
- Placing the stop inside the pattern instead of above its high.
Related patterns
Questions traders ask
Are three black crows bearish?
Yes. They show sellers in charge for three candles. Late in a long fall they are often the last push, so where they form matters.
Should I sell straight after three black crows?
We would not chase them. Early in a move, sell a small pullback with a stop above the pattern's high.
What proves three black crows wrong?
A close back above the middle of the pattern.
Do three black crows work on gold?
The pattern appears on gold like any market. The same rules apply: favour it early in a fall, sell a pullback, and step aside on a close back above the middle.