TheThree black crows is a three day trend reversal pattern.
This happens after a uptrend and it has all bearish candlesticks which close near the lower price of that particular day. The open price of each of the candlestick should be with in the real body of the previous day’s candlestick
Psychology of Three black crows pattern is that during uptrend one large bodied bearish candlestick on Day 1 indicates that bears managed to keep the price of the security at low. This is repeated on Day 2 and Day 3. As Open, High, Low and close of these bearish candlesticks are lower than the previous day’s candlesticks, it indicates the strength of bearish momentum and signals that prices are moving down.
