What are three black crows?

Three Black Crows is a bearish pattern that signals a possible trend reversal after a bullish trend, indicating a potential market decline.

How to spot three black crows?

To identify the Three Black Crows pattern, remember: –

The first candle should be a large red bearish candle formed on resistance with a large actual body.
The second candle will be a large bearish candle opening after the middle of the first candle and closing below the low point of the first candle.
The next candle will be large and bearish, opening around the middle of the previous candle and closing below its low point.

Consider these points.

The Three Black Crows pattern shows that buyers have lost control and sellers are now in charge, suggesting a potential market decline.

Use modern techniques like volume and indicators with Three Black Crows.

If the volume increases with this candlestick pattern, it is likely that the market will go into a downtrend.

Using RSI and MACD indicators along with the candlestick pattern increases our market accuracy and improves the likelihood of correct predictions.

This candlestick pattern can be used for entering, exiting, and setting stop losses in trending markets.

ENTRY : – If three black crows form at resistance, enter the market after the next three candles break the lows of the third candle.
STOPLOSE:-Set stoploss at the high of the first candle in this pattern.
TARGET :-Set the target after confirming the target support or at least 2 to 3 times of our stop loss.