The Three Black Crows is a bearish reversal pattern. This forms at the peak of an uptrend. It forms as a series of three long consecutive bearish candles.
Identifying the Three Black Crows
The Three Black Crows candle pattern is formed by three consecutive bear candles that develop at the end of a downtrend. The opening of one candle is almost at the same level or slightly higher than the close of the previous candle. This signals the development of a strong downtrend.
The Three Black Crows pattern usually develops when the markets experience high volatility. For example, after a news item is released resulting in a strong uptrend, the Three Black Crows will usually form when the trend suddenly reverses driving prices down again.
How to trade the Three Black Crows on IQ Option
Once an uptrend becomes exhausted, the Three Black Crows pattern starts to develop. This signals a strong downtrend is developing. You should enter a long sell position. If you’re using 1-minute candles, your entry point should be anywhere within the 3 bearish candles. If you can enter your sell position in the first candle, the better. Your trade should last anywhere between 5 and 10 minutes.
Now that you’ve learned how to trade the Three Black Crows pattern, try it out in your IQ Options practice account. Share your results in the comments section below.
Good luck!
Top 5 Trending
Forget Tiffany’s—there’s a diamond that traders treasure even more. Diamond chart patterns may not sit on a ring, but they… [Read More]
The Psychological Line (PSY) Indicator is a versatile, oscillator-type trading tool that compares the number of periods with positive price… [Read More]
Have you ever felt like your trading approach could benefit from a little extra energy? That’s where the Relative Vigor… [Read More]
Can’t wait for the markets to reopen on Monday? Whether your weekdays are packed or you want to trade on… [Read More]
In the high-stakes world of binary options trading, having the right indicators on hand can be the difference between a… [Read More]