- Source: Three black crows
Three crows is a term used by stock market analysts to describe a market downturn. It appears on a candlestick chart in the financial markets. It unfolds across three trading sessions, and consists of three long candlesticks that trend downward like a staircase. Each candle should open below the previous day's open, ideally in the middle price range of that previous day. Each candlestick should also close progressively downward to establish a new near-term low. The pattern indicates a strong price reversal from a bull market to a bear market.
The three crows help to confirm that a bull market has ended and market sentiment has turned negative. In Japanese Candlestick Charting Techniques, technical analyst Steve Nison says "The three crows would likely be useful for longer-term traders."
This candlestick pattern has a counterpart known as the Three white soldiers, whose attributes help identify a bullish reversal or market upswing.
See also
Technical analysis
Market timing
References
Further reading
Japanese Candlestick Charting Techniques by Steve Nison. Published by New York Institute of Finance. ISBN 0-7352-0181-1
External links
Stock Charts - Glossary
Investopedia - Dictionary
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