CDL3BLACKCROWS (CDL3BLACKCROWS)

CDL3BLACKCROWS (Three Black Crows) is a powerful bearish reversal pattern consisting of three consecutive long bearish candles. Each candle opens within or near the previous candle's body and closes progressively lower, creating a staircase-down appearance. The candles should have small or no wicks, indicating sustained selling pressure throughout each session. Each successive candle should open at or slightly above the previous close, then sellers dominate and drive price lower. The pattern shows a clear shift from bullish to bearish control, with three consecutive sessions of distribution overwhelming buying attempts.

Three Black Crows is one of the most reliable bearish reversal patterns, especially popular in cryptocurrency trading for identifying trend changes after rallies. When this pattern appears after an extended uptrend or at key resistance levels, it signals strong conviction among sellers. Crypto traders often enter short positions as the third crow closes, or wait for a minor pullback to the pattern's high for better risk-reward entries. The pattern is most powerful when accompanied by increasing volume on the bearish candles and when it appears at psychological price levels (round numbers). Combine Three Black Crows with momentum confirmation: RSI breaking below 50, MACD bearish crossover, or AD Line showing distribution. Stop losses are typically placed just above the first candle's high. This pattern is highly respected and frequently referenced in crypto technical analysis communities.