Technical Analysis 19

Three Black Crows

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Three black crows is a term used by stock market analysts to describe a market downturn. It appears on a candlestick chart in the financial markets. It unfolds across three trading sessions, and consists of three long candlesticks that trend downward like a staircase. Each candle should open below the previous day's open, ideally in the middle price range of that previous day. Each candlestick should also close progressively downward to establish a new near-term low. The pattern indicates a strong price reversal from a bull market to a bear market.^[1]
The three black crows help to confirm that a bull market has ended and market sentiment has turned negative. In Japanese Candlestick Charting Techniques, technical analyst Steve Nison says "The three black crows would likely be useful for longer-term traders."^[2]
This candlestick pattern has a counterpart known as the Three white soldiers, whose attributes help identify a bullish reversal or market upswing.

See also[edit]

• Candlestick chart
• Technical analysis
• Market timing

References[edit]

1. ^ "Stock market investing 101 - Simplified utilizing candlestick signals". Retrieved 16 June 2010. 
2. ^ Nison, Steve (2001). Candlestick Charting Explained (2nd ed.). Paramus, New Jersey: New York Institute of Finance. p. 97. ISBN 0-7352-0181-1. 

• Japanese Candlestick Charting Techniques by Steve Nison. Published by New York Institute of Finance. ISBN 0-7352-0181-1
• Candlestick Charting Explained by Gregory L. Morris. Published by McGraw-Hill. ISBN 0-07-146154-X

External links[edit]

• Stock Charts - Glossary
• Investopedia - Dictionary
• Prosticks - Chart Patterns