There is a candlestick pattern with the name of the Three Black Crows. It develops at the top of the uptrend when the trend is going to reverse. And it consists of three subsequent bearish candles. The Three Black Crows is a bearish reversal pattern.
In this guide, I will shortly present this pattern to you. I will also show you how to use it in trading on the Olymp Trade platform.
How to identify the Three Black Crows pattern
I have already mentioned, that this pattern can be observed at the peak of the uptrend when the trend reversal takes place. The three bearish candles are developing one after another in the way, that the open of the next candle is only slightly higher than the close of the earlier one. From that, you can assume, a strong downtrend has just begun.
The pattern called the Three Black Crows unfolds on the markets with high volatility. Like after some news release a strong trend is rising only to collapse suddenly.
How to use the Three Black Crows candles pattern in trading on the Olymp Trade platform
So you already know this particular pattern is formed when the uptrend is exhausted. The Three Black Crows in the body of three bearish candles, promise the beginning of a strong downtrend. That is why this is a good time to go short. Place the order immediately after the last crow fully develop. If you trade, like in the example, 1-minute interval candles, your position should last from 5 to 10 minutes.
Go to your Olymp Trade demo account and find the Three Black Crows on the chart. Practice trading with it and tell us your findings.
All the best!
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