Three Black Crows
Three Black Crows is a term used by traders to describe a market downturn. It is based on a candlestick charting pattern that consists of three consecutive bearish candlesticks. The pattern is believed to be an early warning of a reversal in the current uptrend. The three black crows pattern is considered to be one of the most reliable bearish reversal patterns.
History of Three Black Crows
The Three Black Crows pattern was first described by Japanese rice trader Homma Munehisa in the 1700s. He used candlestick charting to analyze the price movements of rice and other commodities. The Three Black Crows pattern is one of the oldest and most reliable bearish reversal patterns. It is still used by traders today to identify potential market reversals.
Table of Comparisons
| Pattern | Description | Reliability |
|---|---|---|
| Three Black Crows | Three consecutive bearish candlesticks | High |
| Three White Soldiers | Three consecutive bullish candlesticks | High |
| Abandoned Baby | A doji followed by a gap and a bullish candlestick | Medium |
| Dark Cloud Cover | A bearish candlestick followed by a gap and a bullish candlestick | Medium |
Summary
The Three Black Crows pattern is one of the oldest and most reliable bearish reversal patterns. It consists of three consecutive bearish candlesticks and is believed to be an early warning of a reversal in the current uptrend. For more information about this pattern, traders can visit websites such as Investopedia, TradingView, and StockCharts.
See Also
- Three White Soldiers
- Abandoned Baby
- Dark Cloud Cover
- Doji
- Engulfing Pattern
- Harami
- Morning Star
- Evening Star
- Shooting Star
- Hanging Man
