3 BLACK CROWS [Price Action Pattern] Forex & Crypto Trading Strategy — This candle combination, which belongs to the category of patterns indicating the continuation of the trend.
Very rarely, after the construction of the «3 Black Crows» there is a reversal.
The formation consists of 3 bearish candles:
1) the shadows are insignificant compared to the size of the body. The absence of significant lower shadows speaks in favor of the strength of the bears, the fall does not meet with resistance;
2) on each candle, the previous Low is updated;
3) there are no impulsive movements. If one of the candles is several times larger than the neighboring ones, the reliability of the Three Black Crows pattern decreases.
4) Time interval — from 1 hour and above.
How to trade Three black crows
1) The entry occurs after the close of the 3rd black candle, if they are not very large (average in relation to the previous ones).
2) Stop loss — above the 1st candle
3) Take — Profit — there are options:
- At a distance of 1 to 2 or 1 to 3 in relation to the stop loss.
- Fixing at important Fibonacci levels.
- Fixing at important price levels.
- 2 profits — at a distance of 1 to 1 and 1 to 2 in relation to the stop.