Three Black Crows: The Bearish Pattern That Confirms a Trend Has Turned

Three sessions. Three red candles. Each opens within the prior candle's body. Each closes lower. Each closes near its session low with minimal lower wick.

Three black crows doesn't signal that sellers might be gaining control — it shows they've already had it for three full sessions.

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What Is Three Black Crows?

The exact mirror of three white soldiers:

Candle 1: A bearish (red) candle appearing in or after an uptrend.

Candle 2: Another bearish candle that:

• Opens within Candle 1's body
• Closes lower than Candle 1
• Has minimal lower wick

Candle 3: A third bearish candle that:

• Opens within Candle 2's body
• Closes lower than Candle 2
• Closes near its session low

Formation rules:

• Three consecutive bearish candles
• Each opens within the prior body (no large gaps)
• Each closes progressively lower
• Minimal lower wicks (buyers couldn't push back)
• Context: After an uptrend or rally

Strength rating: 85/100.

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The Psychology

Three sessions where sellers systematically took price lower without meaningful pushback.

The "within the prior body" opening is as significant here as in three white soldiers. It shows steady, persistent selling — not a panic gap, not a one-time event. Sellers are in control, consistently, session after session.

The minimal lower wicks say: buyers tried to push back in every session, and couldn't. Every session closed near its low. That's a market in systematic decline.

In crypto, three black crows on the daily chart can signal the beginning of a multi-week or multi-month bear move. They often appear near the start of a trend change — not at the absolute peak, but 5–10% below it, after the initial drop has started.

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What It Means Based on Position

At the Top of an Uptrend — Highest Conviction

Three consecutive red sessions after a sustained bull run says the party is over — and it's been over for three days already. The reversal isn't happening; it's happened. By the time you see the third candle, sellers have already had three sessions of control.

The more extended the prior uptrend, the more significant the three black crows. Three red candles after a 5-day rally are less meaningful than three red candles after a 3-month bull move.

After a Gap Up or Parabolic Move

Three black crows that form immediately after a gap up or parabolic price action signal a blow-off top. The gap up attracted retail buyers; the three crows are institutional sellers distributing into that retail excitement. This is the highest-conviction version.

Mid-Trend Pullback

Three black crows during an otherwise healthy uptrend may signal a significant pullback rather than a full reversal. Check the larger trend context — if the structure remains bullish (higher lows, price above key MAs), this could be a buying opportunity in the dip rather than a trend change signal.

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How to Trade Three Black Crows

Entry: Short on the close of the third candle, or the open of the fourth session.

Stop loss: Above the high of the first candle in the three-crow sequence. If price reclaims that level, the reversal has failed.

Take profit: Previous support level, a Fibonacci retracement level, or a measured move equal to the height of the three-candle pattern.

Volume: Consistent or increasing volume across the three candles strengthens the signal. If the third candle has notably lower volume than the first, selling momentum may be slowing.

Caution — short entry after extension: Like three white soldiers, the three black crows pattern means price has already moved significantly. Shorting after three full red sessions sometimes means entering after the easy money is gone. Consider partial entries and adding on bounces.

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Three Black Crows vs. Three White Soldiers

Identical structure, mirror logic.

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