Three Black Crows and Three White Soldiers Patterns

Also, the trader needs to have patience for taking these reversal trades. But these easily identifiable reversal patterns give good profit if the market condition favours the trade. Though both of them are reversal patterns, the white soldiers form at the bottom of the bearish trend giving a bullish reversal combination. But the three black crows pattern forms at the top of a bullish trend and indicates a potential bearish reversal pattern. For stocks or instruments whose prices are moving upwards, the candlestick is usually represented in white or green.

In intraday trading, one can look at 5 minutes, 15 minutes and hourly charts to identify this pattern. These three candles fulfil the necessary conditions of the three black crows pattern. The third candle should again be red in colour and can either be a long or small candlestick.


Simply put, this pattern signals a bearish sentiment and one should be cautious once this pattern is visible on the charts. This indicator is useful for the traders to find out trend reversals and momentum in the securities. It gives the data about the close relative to the high-low range over some intervals. Traders can get every information by looking at the three black crows trends, but instead, most look into various indicators, leaving the important one aside. Let us look at a real-life example of three black crows candlestick pattern. It is clearly evident in the technical chart of the stock of Maruti Suzuki India Limited.

The three white soldiers candlestick pattern is a bullish reversal pattern but the three black crows pattern exclusively indicates a potential bearish reversal. We have included the two in one article for their structural similarities. This pattern in technical analysis can be used by traders to gain good profits. Three black crows pattern works very well on monthly, weekly, daily and intraday charts. The chart pattern might have got the name because its formation indicates the end of a bullish trend.

  • In addition, each candle has a very short lower shadow—ideally no shadow at all—indicating bears are able to keep price near the low of the session.
  • The three white soldiers candlestick pattern is a bullish reversal pattern but the three black crows pattern exclusively indicates a potential bearish reversal.
  • If the three black crows pattern involves a significant move lower, traders should be wary of oversold conditions that could lead to consolidation before a further move lower.
  • The three black crows ascertain the trends in the market rather than giving you signs of entry and exit routes.

The bearish three black crow pattern most often occurs at the end of a bullish trend. However, like its bullish counterpart, the three white soldiers, it can also occur after a period of price consolidation. While it is still considered a signal of upcoming bearish action, it is not as strong a signal as a pattern that emerges after a strong uptrend. The stop loss should be the high price of the first candle of the three black crows candlestick pattern.

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It can be a period of bearish movement where the market oscillator reaches above 70 signifying a temporary overselling situation. It usually forms during an uptrend, comprises three long-bodied candles, creating a downward movement. Each of these candles opens within the body of the three black crows pattern preceding one and closes lower than the previous one. To traders, it indicates an end of a bullish run and the onset of a downtrend. The candles have long real-body with short or no shadows – hinting that bear forces have successfully pulled the market down and closed near the low.

three black crows pattern

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Three White Soldiers & Three Black Crows: How to Trade These Candlestick Patterns?

Three Black Crows Candlestick Pattern is a trend reversal pattern which is formed to indicate a downtrend in stock prices after a long up move has been witnessed in the stock prices. On these screeners, one can easily fill all the conditions necessary to be fulfilled for a three black crows candlestick pattern and identify it as soon as the screener is run. Here the three white soldiers pattern can be seen developing at the end of a long bear trend. This pattern defies the prevailing downtrend and starts a price reversal pattern. However, after a few bullish candles, the stock may reach the overbought zone and need to pause.

three black crows pattern

The trader doesn’t trade the candles but gets confirmation from other trend reversal oscillators and then takes position. Be it real life or the stock market there is no joy to see the black crows anywhere. All you need to do is flip your wings and soar down if you want to learn more about the three black crows candlestick pattern.

Top 11 Trend Indicators You Can’t Miss As A Trend Trader

The strength of the bearish force is confirmed when all three candles featuring large bodies of the average same size are seen. It marks an aggressive move by the bears in the market to bring back the price back and also reverse the earlier gains by the bulls. If at all you see, the third candle is smaller as compared to the other two, then it indicates weakness, and it can be concluded the pattern is not too reliable. Similarly, the open price of the third candle is between the middle point and low price of the second one and the close is below the low of the previous one. In fact, some of the brokerage platforms also provide the feature of screeners on their user interface. In order to use Three Black Crows Candlestick Pattern for trading purposes, one should also pay attention to other factors like volume of trades, Relative Strength Index , etc.

The Three Black Crows and The Three White Soldiers Pattern

The three black crows candlestick pattern is just the opposite of white soldiers pattern discussed above. This is also a pattern of the reversal candlestick pattern family. The three black crows can be identified by the consecutive bearish candles. From traders to analysts to corporations, everyone uses candlestick charts. The pattern gives the traders the gist of the trends in the market at a particular time.

It can also be seen that when the first green candle developed, the stochastic indicator also gives an oversold reading. When the pattern developed, bears can see it and exit from their sell position. The chart shows actually what happens when traders see this pattern at the end of a bull run.

This indicates that the commodity trend will make higher highs when all the three candles are present in an uptrend. The trading volume must be higher when these three green candles are seen. And all the candlesticks have small upper wicks and lower shadows. The low of the three candles should be taken as the stop loss and target can be fixed based on the previous trendlines, resistance lines, etc. It is important to note that, by the time this Three Black Crows Candlestick is formed, the security might reach its support zone. From the above example, we can see that after an uptrend, a Three-Black Crows Candlestick Patter has emerged.

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