The Three Black Crows is a bearish reversal pattern that indicates a potential shift from an uptrend to a downtrend. It is formed by three consecutive long bearish (red) candles that close progressively lower than the previous one, signaling strong selling pressure.

* First Candle : A long bearish candle that opens and closes lower than the previous day.
* Second Candle : Another long bearish candle that opens within the first candle’s body and closes lower.
* Third Candle : A third long bearish candle that opens within the second candle’s body and closes even lower.

The Three Black Crows pattern suggests that the bulls have lost control, and the market may be turning bearish.

How Traders Use It:
* Entry Point : Sell when the third candle closes below the low of the previous candle.
* Stop-Loss : Place it above the high of the first candle to manage risk.
* Target Price : Estimate the target using previous support levels or other technical indicators.

The Three Black Crows pattern is often used in uptrending markets to identify potential bearish reversals and capitalize on downward price movement.