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Three black crows signal a bearish trend from "summary" of Japanese Candlestick Charting Techniques by Steve Nison
When three long black candlesticks show up in a row, a bearish trend may be on the horizon. These three black crows can be a sign that the bears are in control, and that the market sentiment is turning negative. It is essential to pay attention to these three black crows as they could indicate a potential reversal in the current trend. Each of the three black crows should have a long body with little to no wicks on either end. This signifies that the bears were able to keep control throughout the entire trading period, pushing prices lower and lower. The absence of wicks suggests that there was little to no buying pressure to counteract the selling pressure from the bears. The close of each black candlestick should be near the low of the day, indicating that sellers were able to drive prices down without much pushback from buyers. This can be a clear signal that the bears are gaining strength and that a bearish trend is forming. The three black crows pattern is a strong indication of potential downside movement in the market. It is important to look for confirmation from other technical indicators or chart patterns when identifying the three black crows. While this pattern can be a powerful signal of a bearish trend, it is always prudent to look for additional confirmation before making any trading decisions. By combining the three black crows pattern with other technical analysis tools, traders can increase their confidence in the potential bearish trend.- The three black crows pattern is a bearish signal that should not be ignored. It can provide valuable insights into market sentiment and potential future price movements. Traders should be on the lookout for this pattern as it could be a warning sign of a bearish trend ahead.
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