Three Black Crows Pattern
When three ominous crows land on your chart, the message is clear—bears have seized control and aren't letting go.
What is the Three Black Crows Pattern?
The Three Black Crows is a bearish reversal pattern consisting of three consecutive long-bodied bearish candles. Each candle opens within the body of the previous candle and closes lower.
The pattern's name comes from the foreboding image of three black crows sitting on a fence—in folklore, a bad omen. In trading, it signals that sellers are in complete control.
Pattern Type
Three-candle bearish reversal
Reliability
Very high—strong signal
Watch For
Oversold bounce risk
The Psychology Behind the Pattern
Day One: After an uptrend, the first long bearish candle appears. Some dismiss it as profit-taking.
Day Two: Instead of bouncing, the market opens lower and sells off again. Those who "bought the dip" are now underwater.
Day Three: Panic sets in. The third consecutive bearish session confirms this isn't a pullback—it's a reversal.
How to Identify the Pattern
Three Consecutive Bearish Candles
Each candle must close lower than the previous.
Long Bodies
Each candle should have a substantial body showing conviction.
Opens Within Previous Body
Each candle opens within or near the previous candle's body.
Trading Strategy
Entry Point
Enter short on a break below the third crow's low.
Stop Loss
Place stop above the first crow's high.
Targets
First target: Previous support level or 1:1 risk/reward ratio.
Second target: 1:2 risk/reward ratio or next major support.
Three Black Crows vs Three White Soldiers
Three Black Crows
- • Appears after uptrends
- • Three bearish candles
- • Signals downward reversal
- • Trade: Short positions
Three White Soldiers
- • Appears after downtrends
- • Three bullish candles
- • Signals upward reversal
- • Trade: Long positions
Common Mistakes to Avoid
Chasing After Extended Drops
If the pattern represents a massive decline, the market may be oversold.
Ignoring Support Levels
If the third crow lands on major support, expect a bounce.
Frequently Asked Questions
Why is the three black crows pattern considered bearish?
The three black crows show three consecutive bearish candles, each opening within the previous candle’s body and closing at a new low. That structure shows sustained selling pressure—sellers are in control for three periods in a row. After an uptrend, it’s one of the stronger bearish reversal signals.
Where should I place my stop loss on three black crows?
Place your stop loss above the high of the first of the three candles (or above the high of the recent swing). If price breaks above that level, the bearish reversal is invalidated. Some traders use the high of the third candle for a tighter stop.
How is three black crows different from three white soldiers?
Three black crows is a bearish reversal pattern: three consecutive bearish candles after an uptrend. Three white soldiers is a bullish reversal pattern: three consecutive bullish candles after a downtrend. Same structure, opposite direction.
Should I wait for all three candles to close before shorting?
Yes. The pattern is only complete when the third candle closes. Entering before the third candle closes can lead to false signals if the third candle reverses. Many traders enter on the next candle or when price breaks below the low of the third candle.
Can three black crows appear at support and still be valid?
Yes, but be cautious. If the third crow lands on major support, price may bounce instead of continuing down. Some traders still short but use a tighter stop or take partial profits at support. Context—support and resistance—matters as much as the pattern.