Three Black Crows (3BC)

Question 1

What is the Three Black Crows Pattern?

Answer 1

The three black crows chart formation (3 black crows) is a bearish reversal pattern. It consists of three consecutive bearish candles that form within an uptrend.

Question 2

How to Identify and Use Three Black Crows?

Answer 2

Follow these steps to identify and trade three black crows:

• Recognize an uptrend in price.
• Locate three consecutive bearish candles.
• Qualify each candle’s short upper shadow and low close relative to the previous candle.
• Look to sell beneath the pattern.

Question 3

How to Trade the Three Black Crows Candlestick Pattern?

Answer 3

• Market Entry: Enter a sell order beneath the low of the third candle.
• Stop Loss: Place a stop above the top of the pattern, above the high of the first candle.
• Profit Targets: Profits are taken in adherence to an acceptable risk vs. reward ratio. A few of the more common ratios used in trading are 1:1, 1:2, 1:3, and 1:4.