The Three Black Crows is a bearish candlestick pattern used in technical analysis to signal a potential reversal of an uptrend. Three consecutive long-bodied bearish (red or black) candles open within the previous candle’s body and close near their lows, indicating strong selling pressure.

Interpretation:
Bearish Reversal Signal – The pattern suggests buyers are losing control, and sellers are dominating, leading to a possible downtrend.

Confirmation – Traders often look for additional confirmation, such as high trading volume or a break below support levels, to validate the reversal.

Psychology – Each candle represents increasing pessimism, with the third candle reinforcing the bearish momentum.

False Signals – If the pattern appears after a mild uptrend or in a sideways market, it may not be as reliable.

Contrast with Three White Soldiers – The opposite bullish pattern confirms an uptrend reversal.

Limitations:
Works best after a prolonged uptrend.

Requires confirmation from other indicators (e.g., RSI, MACD).

Traders often use the Three Black Crows to exit long positions or initiate short trades, but risk management (stop-losses) is crucial to avoid false breakdowns.

The Three Black Crows is a bearish candlestick pattern signalling a potential reversal of an uptrend. It consists of three consecutive long red (or black) candles with small or nonexistent wicks, each opening within the previous candle's body and closing near its low. This formation indicates strong selling pressure as bulls lose control to bears. Traders interpret it as a warning of a sustained downtrend, especially if it appears after a prolonged rally or at a key resistance level. Confirmation, such as high trading volume or follow-up bearish movement, strengthens its reliability. However, false signals can occur, so analysts often combine it with other indicators like moving averages or RSI for better accuracy. The pattern is most effective in downtrend confirmations but should be used cautiously in volatile markets.