The Three Black Crows pattern is the opposite of the Three Advancing White Soldiers candlestick pattern. The Three Black Crows candlestick pattern is a bearish reversal pattern that consists of three bearish candlesticks that are ominous and dark in color, hence the name. This is a moderate trend reversal pattern that should only come into consideration when it appears in a rally or an established uptrend. The Three Black Crows usually indicates a weakness in an established uptrend and the potential emergence of a down trend.
Each of the three candlesticks in the Three Black Crows pattern should be relatively long bearish candlesticks with each candlestick closing at or near the low price for the period. Each successive candlestick should mark a steady decline in price and should not have long lower shadows or wicks. Preferably, each of the three candlesticks should open within the real body of the preceding candlestick in the pattern but this is not essential. When this pattern appears in an uptrend, it indicates the potential weakening of the trend and a possible trend reversal. However, if the three candlesticks are over extended and make significant price declines, you may need to be wary of oversold conditions.
The Three Black Crows can be seen in the shaded area on the following 15-minute Euro/USD Forex chart. The Three Black Crows were made from a double tops level at around 1.30249 that was made at 2:15 AM and at 11:00 AM on May 14, 2013.