Three Black Crows / 三羽烏・陰線三本
Reference values based on Bulkowski's "Encyclopedia of Chart Patterns". Data is primarily from U.S. markets and may differ for other markets.
A powerful bearish reversal pattern consisting of three consecutive large bearish candles. Each candle opens within the previous candle's body (preferably below the midpoint) and closes at or near the low. When appearing at the top of an uptrend, it signals the start of a strong downtrend. A classic formation signaling a definitive top reversal.
Enter short at the next candle's open after the third bearish candle confirms. Or enter when price drops below the third candle's low. Confirm the third candle has a sufficiently large body.
Project the combined range of the three bearish candles downward from the third candle's close. Or target the nearest support line.
Place a stop-loss slightly above the first bearish candle's high. A tighter stop above the second candle's high is also possible.
Ideally, volume gradually increases across the three candles. Without volume, the decline may have limited momentum.