For a better understanding of this article, you should already know what Japanese Candlesticks are and all their features; for this reason, we suggest you to read this introductory article to Japanese Candlesticks: Japanese Candlestick Chart ( So that you can understand also the Ratings given to the Candlestick Patterns for the “quality” of the signal and for their frequency to “appear” on Charts).
Let’s analyse now the following Candlestick Pattern: “Three Black Crows Pattern”.
Three Black Crows Pattern
– Normally it should be a signal of Bearish reversal of the current Trend (If it occurs during an Uptrend); whereas it should be a signal of continuation of the current Trend if it occurs during a Downtrend.
– The Pattern is characterized by Three black consecutive candles, each with a lower Low; the Open of the Second and Third Candle are within the Real Body of the Previous Candle.
– The Real Bodies of the Candles have the same length (More or less); better if the Real Body of each Candle is longer than the Real Body of the Previous Candle.
– Normally the Open of the Second and Third Candle are above the Close of the Previous Candle (Or at the same level).
– The Lows are gradually lower, whereas the Close of the Candles should be below the Low of the Previous Candle.
– In case that the first Candle after the Pattern is a white Long Line that makes an “Engulfing Pattern”, it is a strong signal of Bullish Reversal.