All CandleStick Patterns

Candles 2 and 3 of the pattern should open within the body of the prior candle, and all three should close near their lows, making new lows along the way. If this pattern is followed by a bullish confirmation candle, one should cover his short position. In the above chart the down fall came to an abrupt end, followed by white candles with increased volume. Descending triangles 3 minutes. Table of Contents Candlestick Pattern Dictionary.

Three black crows is a bearish candlestick pattern that is used to predict the reversal of the current uptrend. This pattern consists of three consecutive long-bodied candlesticks that have opened.

Three Black Crows

The uptrend continues with a large white body. The next day opens higher, trades in a small range, then closes at its open Doji. The next day closes below the midpoint of the body of the first day. A bearish reversal pattern that continues an uptrend with a long white body day followed by a gapped up small body day, then a down close with the close below the midpoint of the first day.

A bearish continuation pattern. A long black body is followed by three small body days, each fully contained within the range of the high and low of the first day. The fifth day closes at a new low. Hammer candlesticks form when a security moves significantly lower after the open, but rallies to close well above the intraday low. The resulting candlestick looks like a square lollipop with a long stick.

If this candlestick forms during a decline, then it is called a Hammer. Hanging Man candlesticks form when a security moves significantly lower after the open, but rallies to close well above the intraday low.

If this candlestick forms during an advance, then it is called a Hanging Man. A two-day pattern that has a small body day completely contained within the range of the previous body, and is the opposite color. A one-day bullish reversal pattern. In a downtrend, the open is lower, then it trades higher, but closes near its open, therefore looking like an inverted lollipop.

A long day represents a large price move from open to close, where the length of the candle body is long. This candlestick has long upper and lower shadows with the Doji in the middle of the day's trading range, clearly reflecting the indecision of traders. Candlesticks with a long upper shadow and short lower shadow indicate that buyers dominated during the first part of the session, bidding prices higher. Conversely, candlesticks with long lower shadows and short upper shadows indicate that sellers dominated during the first part of the session, driving prices lower.

A candlestick with no shadow extending from the body at either the open, the close or at both. The name means close-cropped or close-cut in Japanese, though other interpretations refer to it as Bald or Shaven Head. A three-day bullish reversal pattern that is very similar to the Morning Star.

The first day is in a downtrend with a long black body. The next day opens lower with a Doji that has a small trading range. The last day closes above the midpoint of the first day.

A three-day bullish reversal pattern consisting of three candlesticks - a long-bodied black candle extending the current downtrend, a short middle candle that gapped down on the open, and a long-bodied white candle that gapped up on the open and closed above the midpoint of the body of the first day. A bullish two-day reversal pattern. The first day, in a downtrend, is a long black day. The next day opens at a new low, then closes above the midpoint of the body of the first day.

A bullish continuation pattern in which a long white body is followed by three small body days, each fully contained within the range of the high and low of the first day. The fifth day closes at a new high. A single day pattern that can appear in an uptrend. It opens higher, trades much higher, then closes near its open. It looks just like the Inverted Hammer except that it is bearish. A short day represents a small price move from open to close, where the length of the candle body is short.

Candlestick lines that have small bodies with upper and lower shadows that exceed the length of the body. Spinning tops signal indecision. A candlestick that gaps away from the previous candlestick is said to be in star position. Depending on the previous candlestick, the star position candlestick gaps up or down and appears isolated from previous price action. The Three Black Crows pattern is most useful for long-term traders. The second and third candles must be approximately the same size, to show that the bears are firmly in control.

If the third candle is clearly smaller than the others, this indicates weakness and the pattern is not as reliable as it might have been otherwise. Check out the examples below to test your knowledge of the Three Black Crows candlestick pattern.

In our first example, the Three Black Crows appear after a brief uptrend. As we move through the pattern, the three candles gain length: This progressive lengthening bodes well for the reversal, and as expected, a strong downtrend materializes soon afterward.

In our next example, after some ebbs and flows, a mid-sized uptrend appears. At the top, following a long-legged doji, Three Black Crows land on the chart. Although the bears have made a strong showing and exhibited their strength, they fail! This example shows why you should always wait for confirmation.

A bullish candle appears after the Three Black Crows, and the price then surges upward in a spirited uptrend.

The bears have failed in their quest. One might debate whether our third example qualifies as a Three Black Crows candlestick pattern. Do you know why? In a way, it lacks the very first criteria we mentioned above: If you count those tiny candles as an uptrend, this is indeed a Three Black Crows pattern. As expected, the price dips after the signal appears.

Recommended Reading:

The Three Black Crows pattern is the opposite of the Three Advancing White Soldiers pattern. The Three Black Crows pattern is a bearish reversal pattern that consists of three bearish candlesticks that are ominous and dark in color, hence the name. Three Black Crows Candlestick: Discussion. The three black crows candlestick acts as a bearish reversal 78% of the time. The reason for such a high number is that a close below the bottom of the candle pattern will mark it as a bearish reversal, but price has to climb and close above the top of it to score it as a bullish continuation. Bearish Three Black Crows candlestick chart analysis, Daily top lists, Candle charts, Free candlestick search, Email alerts, Portfolio tracker, Candlestick patterns.