Three Black Crows

The Three Black Crows is a bearish candlestick pattern that is used to identify a potential reversal in an uptrend. This pattern consists of three consecutive long black (or red) candles with each candle closing near the low of the day, indicating that the bears are in control of the market.

The pattern usually forms after a period of bullishness, with the first black candle opening and closing above the previous day's close. The second and third black candles continue the downward movement and close progressively lower, with each candle opening below the previous day's opening.

The Three Black Crows pattern is considered significant when it occurs after a prolonged uptrend, and it indicates a strong bearish sentiment. Traders typically look for a confirmation of the reversal in the form of further downward movement before entering a short position.