What is Three Black Crows? Is it really about trading? Short answer: YES. The candlesticks tend to form patterns on the price chart. These patterns repeat themselves and so can be used to predict future price movements. Today, I will describe the pattern which develops when the uptrend is coming to an end. It is called the Three Black Crows.
The Three Black Crows pattern overview
The pattern known as Three Black Crows is a bearish pattern which gives information about the reversal of the trend. It is in the form of three candles, all of them are bearish.
The opening of one candle in the pattern is situated near to the previous candle closing. It is usually almost the same level where one candle closes and another opens.
The appearance of the Three Black Crows indicates that a strong downtrend is in progress. It often happens in the markets that are highly volatile. Important news releases can influence market volatility. A strong uptrend may then develop, and when the trend reverses, the Three Black Crows arrive to forecast abrupt downtrend.
Trading with the Three Black Crows on the Binomo platform
Consider the chart above. The uptrend comes to an end and the Three Black Crows emerge. Three consecutive bearish candles announce that a strong downtrend has begun. This means you ought to open a sell trade. Open it at any of three candles from the pattern. If you spot the Black Crows early enough, enter the trade at the first candle in the pattern. With a 5-minute candles period, you can hold the position for around 30 minutes.
Summary
Trading with the Three Black Crows is not complicated. Your task is to identify the pattern. The sooner the better, because you will be able to enter the market earlier.
This is a bearish reversal pattern and therefore you should open a sell position with it.
Always try new patterns or indicators on the demo account. It is free of charge on the Binomo platform so you do not risk your money. Yet it gives you time to learn how to trade with the new pattern.
I would love to hear from you. There is the comments section below. Tell us how you like trading with the Three Black Crows on the Binomo platform.
Wish you profitable trades!