Three Identical Crows / 坊主三羽烏
Reference values based on Bulkowski's "Encyclopedia of Chart Patterns". Data is primarily from U.S. markets and may differ for other markets.
An extremely powerful bearish pattern consisting of three consecutive marubozu bearish candles (no lower shadows). An enhanced version of Three Black Crows, where each candle closes at its low, showing sellers allow no recovery and maintain complete control. When appearing at the top of an uptrend, it strongly signals a sharp reversal into a downtrend.
Enter short at the next candle's open after the third marubozu bearish candle confirms. As a very strong signal, follow-up entries when price drops below the third candle's low are also effective.
Project the combined range of the three bearish candles downward from the third candle's close. Expect deeper declines than regular Three Black Crows given the marubozu strength.
Place a stop-loss slightly above the first marubozu candle's open (high). Since marubozu candles show minimal resistance, a tight stop is sufficient.
Ideally, volume increases progressively across the three candles. A volume surge on the third suggests panic selling, indicating further downside potential.