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THREE BLACK CROWS

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Super Contributor
For those interested! The Bearish Three Black Crows Pattern is indicative of a strong reversal during an uptrend. It consists of three long black candlesticks, which look like a stair stepping downward. The opening price of each day is higher than the previous day's closing price suggesting a move to a new short term low. Recognition Criteria: 1. Market is characterized by uptrend. 2. Three consecutive long black candlesticks appear. 3. Each day closes at a new low. 4. Each day opens within the body of the previous day. 5. Each day closes near or at its lows. Explanation: The Bearish Three Black Crows Pattern is indicative of the fact that the market has been at a high price for too long and the market may be approaching a top or is already at the top. A decisive downward move is reflected by the first black candlestick. The next two days show further decline in prices due to profit taking. Bullish mood of the market cannot be sustained anymore. Important Factors: The opening prices of the second and third days can be anywhere within the previous day's body. However, it is better to see the opening prices below the middle of the previous day's body. If the black candlesticks are very extended, one should be cautious about an oversold market. The reliability of this pattern is very high, but still a confirmation in the form of a black candlestick with a lower close or a gap-down is suggested. http://www.candlesticker.com
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Interesting. Thanks PD. :)
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Super Contributor
Is that similar to the Three Blind Mice theory?
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