The Bearish three black crows is the candlestick pattern which consists thee downward candlestick in a row like stair stepping downward.This bearish three black crow pattern is the indicator of strong reversal during bullish trend.The closing pricing of the each day is lower than previous day closing price sugesting a move to a new short term low.
Acknowledging Criteria:
1. Financial market is pro-longed bullish trend.
2. Three consecutive long black candlesticks appear.
3. Each day closes at a new low.
4. Each day opens within the body of the previous day.
5. Each day closes near or at its lows.
Explanation:
The bearish three black crows candlestick pattern is indicative of the fact that the market has been at a high price for too long and the market may be approaching a top or is already at the top. A decisive downward move is reflected by the first black candlestick. The next two days show further decline in prices due to profit taking. Bullish mood of the market cannot be sustained anymore.
The opening price of the second and third candle can be anywhrer within the previous candle body. However it is good to see the opening prices below the middle of the previous day candle.The reliability of this pattern is very high.