Three Black Crows

What Are Three Black Crows?

Three black crows is the bearish counterpart of the Three White Soldiers. It consists of three consecutive long-bodied red (bearish) candles, each opening within or near the prior candle's body and closing at or near the session low. Small wicks indicate that sellers dominated from open to close each session.

The pattern usually forms at the top of an Uptrend and signals that bearish momentum has decisively taken over.

How to Trade It

On a daily USD/JPY chart, three black crows forming at a resistance zone provide a clear short signal. Enter on the close of the third candle with a stop above the first candle's open. Target the next major Support level.

Each candle should have a comparable body size. If the bodies get progressively smaller, selling pressure may be fading, reducing the pattern's reliability.

Practical Considerations

Like three white soldiers, three black crows can signal exhaustion if the candles are unusually large. A sharp three-candle drop may push the price into oversold territory, leading to a bounce. Avoid shorting into an already-established three-black-crows move if you missed the initial entry. Instead, wait for a pullback to the area of the first crow's body for a better risk-reward entry.