# Three Black Crows: Bearish Pattern for Trend Reversals Explained

![Three Black Crows: A bearish candlestick pattern used to predict the reversal of a current uptrend.](https://www.investopedia.com/thmb/hJElaIDDCUcWFNvxs-caCtKf0dg=/1500x0/filters:no_upscale():max_bytes(150000):strip_icc()/three_black_crows.asp-final-689eaa277a7647a48c97d47652f03ff1.png)

*— Investopedia / Tara Anand*

## What Are the Three Black Crows?

Three Black Crows is a bearish candlestick pattern that signals a potential reversal of an existing uptrend. It appears on candlestick charts as three consecutive long-bodied candles. Each opens within the real body of the previous one and closes lower, marking a strong downtrend. Traders look for this pattern, along with other indicators, to confirm bearish market signals, enhancing their strategic insights in volatile markets.

### Key Takeaways

*   The Three Black Crows pattern is a visual bearish indicator signaling a potential reversal from an uptrend in financial markets.
*   This candlestick pattern comprises three consecutive long-bodied candlesticks that open within the previous candle's real body and close lower.
*   Traders often use the Three Black Crows in conjunction with other technical indicators like RSI to confirm potential reversals.
*   The opposite of this pattern, known as the Three White Soldiers, signals a potential reversal from a downtrend.
*   Volume and shadow length on candlesticks can influence the accuracy and reliability of the Three Black Crows pattern.

## Understanding the Three Black Crows Pattern

Three black crows are a visual pattern, meaning that there are no particular calculations to worry about when identifying this indicator. The three black crows pattern occurs when [bears](https://www.investopedia.com/terms/b/bear.asp) overtake the bulls during three consecutive trading sessions. The pattern shows on the pricing charts as three bearish long-bodied candlesticks with short or no [shadows](https://www.investopedia.com/terms/s/shadow.asp) or wicks.

Typically, [bulls](https://www.investopedia.com/terms/b/bull.asp) start with a price opening higher than the previous close, but bears push it lower. In the end, the price will close near the session low under pressure from the bears.

This leads to very short or no shadows. Traders often interpret this downward pressure sustained over three sessions to be the start of a bearish [downtrend](https://www.investopedia.com/terms/d/downtrend.asp).

![Three Black Crows](https://www.investopedia.com/thmb/oMOxnKYDVMWGtlaCnDC4TWVTcvI=/1500x0/filters:no_upscale():max_bytes(150000):strip_icc()/The5MostPowerfulCandlestickPatterns3-f3b280e0165a4b2fa5e5d3b42b36e337.png)

*—  Image by Julie Bang © Investopedia 2020*

## How to Analyze Three Black Crows in Trading

Use three black crows as a visual cue to confirm with other technical indicators. The three black crows pattern and the confidence a trader can put into it depend a lot on how well-formed the pattern appears.

The three black crows should ideally be relatively long-bodied bearish candlesticks that close at or near the low price for the period. In other words, the candlesticks should have long, real bodies and short, or nonexistent, shadows. If the shadows are stretching out, then it may simply indicate a minor shift in [momentum](https://www.investopedia.com/terms/m/momentum.asp) between the bulls and bears before the uptrend reasserts itself.

[Volume](https://www.investopedia.com/terms/v/volume.asp) can make the three black crows pattern more accurate. Volume during the uptrend leading up to the pattern is relatively low, while the three-day black crow pattern comes with relatively high volume during the sessions. In this scenario, the uptrend was established by a small group of bulls and then reversed by a larger group of bears.

Of course, with markets being what they are, that could also mean a large number of small bullish traders running into a smaller group of large volume bearish trades. The actual number of market participants matters less than the volume each is bringing to the table.

## Comparing Three Black Crows and Three White Soldiers Patterns

The opposite of the three black crows pattern is the [three white soldiers](https://www.investopedia.com/terms/t/three_white_soldiers.asp) pattern, which occurs at the end of a bearish downtrend and predicts a potential reversal higher. This pattern appears as three long-bodied white candlesticks with short, or ideally nonexistent, shadows. The open occurs within the previous candlestick's real body, and the close occurs above the previous candlestick's close.

Three white soldiers show a downtrend reversal, while three black crows show an uptrend reversal. The same caveats apply to both patterns regarding volume and confirmation from other indicators.

## Challenges in Interpreting Three Black Crows

If the pattern drops significantly, traders should watch for oversold conditions that might lead to consolidation. To assess if a stock is oversold, check indicators like the [relative strength index](https://www.investopedia.com/terms/r/rsi.asp) (RSI), which shows oversold below 30.0, or the [stochastic oscillator](https://www.investopedia.com/terms/s/stochasticoscillator.asp), which tracks momentum.

Many traders typically look at other chart patterns or technical indicators to confirm a [breakdown](https://www.investopedia.com/terms/b/breakdown.asp), rather than using the three black crows pattern exclusively. As a visual pattern, it is open to some interpretation, such as what is an appropriately short shadow.

Also, other indicators will mirror a true three black crows pattern. For example, a three black crows pattern might break key support levels, predicting an intermediate-term downtrend. [The use of additional patterns](https://www.investopedia.com/ask/answers/031315/how-do-i-build-profitable-strategy-when-spotting-stochrsi-pattern.asp) and indicators increases the likelihood of a successful trade or [exit strategy](https://www.investopedia.com/terms/e/exitstrategy.asp).

## Real-World Application of the Three Black Crows Pattern

In the [third week of May 2018](https://www.poundsterlinglive.com/usd/9086-pound-to-us-dollar-rate-three-black-crows-suggests-winter-is-coming-for-sterling), a three black crows pattern appeared on the [GBP/USD](https://www.investopedia.com/terms/forex/g/gbp-usd-british-pound-us-dollar-currency-pair.asp) weekly price chart, representing an ominous sign for the currency pairing. Analysts speculated that the three black crows pattern indicated that the pairing would continue to trend low. Three factors were analyzed to determine that the three black crows pattern signaled a continuing downturn:

1.  The relatively steep upward trend of the bullish market
2.  The low wicks of each candle indicating a small difference between the close and the week's low
3.  The fact that, while the candles did not gradually elongate, the longest candle was on the third day

## The Bottom Line

Three Black Crows pattern is a key bearish candlestick formation signaling a potential reversal of an uptrend. Recognizable by its three consecutive long-bodied candlesticks with minimal shadows, this pattern is a visual indicator of bears overtaking bulls across three trading sessions. While the Three Black Crows can serve as a warning of a downtrend, traders are advised to confirm this signal with additional technical indicators, such as the Relative Strength Index (RSI), due to the risk of oversold conditions and subsequent retracement. Incorporating volume analysis and other patterns can enhance the reliability of this indicator.

The Three Black Crows' counterpart, Three White Soldiers, conversely, predicts a reversal from a downtrend, further emphasizing the importance of integrating comprehensive analysis in trading strategies.