Three black crows
Stock market term
Three crows is a term used by stock market analysts to describe a market downturn. It appears on a candlestick chart in the financial markets. It unfolds across three trading sessions, and consists of three long candlesticks that trend downward like a staircase. Each candle should open below the previous day's open, ideally in the middle price range of that previous day. Each candlestick should also close progressively downward to establish a new near-term low. The pattern indicates a strong price reversal from a bull market to a bear market.[1]
The three crows help to confirm that a bull market has ended and market sentiment has turned negative. In Japanese Candlestick Charting Techniques, technical analyst Steve Nison says "The three crows would likely be useful for longer-term traders."[2]
This candlestick pattern has a counterpart known as the Three white soldiers, whose attributes help identify a bullish reversal or market upswing.
See also
- Technical analysis
- Market timing
References
Further reading
- Japanese Candlestick Charting Techniques by Steve Nison. Published by New York Institute of Finance. ISBN 0-7352-0181-1
- Candlestick Charting Explained by Gregory L. Morris. Published by McGraw-Hill. ISBN 0-07-146154-X
External links
- Stock Charts - Glossary
- Investopedia - Dictionary
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Technical analysis
- Breakout
- Dead cat bounce
- Dow theory
- Elliott wave principle
- Market trend
- Candlestick
- Renko
- Kagi
- Line
- Open-high-low-close
- Point and figure
- Line break
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- John Bollinger
- Ned Davis
- Charles Dow
- Ralph Nelson Elliott
- John Murphy
- Mark Hulbert
