Three Black Crows Candlestick Pattern ??Nifty Made a three black crows pattern/ pattern activated after today low break.
1) What is Three Black Crows Pattern ??
Three Black Crows got its name from its resemblance to three crows looking down from their perch in a tree. This signal, occurring after a strong uptrend, indicates the crows looking down or lower prices are to come. Each of these candles should close very near the low for the day. This pattern, as will be seen, is the opposite of the Three White Soldiers.
2)Criteria-
1. Three long black bodies occur, all of nearly equal length.
2. The prior trend should have been up.
3. Each day opens within the body of the previous day.
4. Each day closes near its low.
3) Pattern Psychology-
*After an uptrend a long black candle forms. The uptrend has now reached levels where the sellers have started to step in. The first long black candle body is followed by two more long black bodies. Each having opened in the previous day’s body indicates that buying was occurring early each day but the bears kept forcing prices down by the end of the day. This more consistent process of selling provides a stronger downtrend potential versus a rapid overselling period. (See Nifty chart ).
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