Three Black Crows

What is the Three Black Crows?

Three Black Crows is three consecutive long bearish (black / red) candles, each:

1. Opens within the body of the prior candle. 2. Closes near its own low. 3. Has minimal lower wick.

The pattern signals sustained, methodical selling pressure over three sessions — a directional regime shift. Unlike a single Marubozu (which could be a panic flush), three consecutive bearish closes signal institutional distribution.

How to identify a Three Black Crows

Requirements:

1. Three consecutive long bearish candles, each visibly larger than recent average. 2. Each opens within the prior candle's body. 3. Each closes within the lower half of its own range. 4. Lower wicks short or absent.

Context: Three Black Crows at uptrend tops is a strong reversal signal. In confirmed downtrends, it signals continuation. After capitulation flushes, it may signal exhaustion.

How to trade the Three Black Crows

Two contexts.

At uptrend tops (reversal): Enter short at the close of Candle 3. Stop above Candle 1's high. Target the previous swing low.

In confirmed downtrends (continuation): Wait for a bounce to the 50% retracement of Candle 3 before entering. Tighter stop, better R:R.

Avoid trading Three Black Crows after panic-selling capitulation — those often mark exhaustion bottoms rather than continuation. Volume context helps: rising volume on each successive candle confirms distribution; declining volume on the third candle suggests potential reversal.

More patterns and definitions in the forex glossary, or see them stacked on real charts in the trading blog.

Three Black Crows FAQ