Three Black Crows
Three black crows is a bearish continuation pattern of three consecutive strong down-candles with progressively lower closes and lower opens, confirming strong selling momentum.
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How to Identify
Three consecutive candles that close progressively lower
Each candle's open is within the previous candle's body (not gapping down)
Each candle closes below its previous candle's close — descending closes
All three candles are bearish with small wicks, confirming conviction
Volume should increase or remain above average across all three candles
Pattern appears after consolidation or at resistance, not isolated in a trend
Trading Rules
Entry Rules
- Enter short on the close of the third candle or below its low on the next candle
- Conservative entry: wait for the next candle to confirm below the third candle's low, then enter
- Ensure the pattern forms after consolidation or rally, not in the middle of an isolated move
- Confirm volume increased across the three candles
- Best entries during high-liquidity sessions for continuation
Exit Rules
- Measure the distance covered by the three candles and project lower for target
- Take partial profit at the measured distance and trail stop on remainder
- Exit if a bullish candle closes above the open of the first black crow
- Use moving average breakdowns as secondary targets
Measure the total vertical distance covered by all three candles. Subtract this distance from the close of the third candle for your target.
Place stop loss above the high of the first black crow candle. This is the invalidation point — if price closes above here, the pattern has failed.
Success Rate
60-67%
Success rates vary based on market conditions, timeframe, and trader experience. Always validate patterns with your own journal data.
Journaling Tips
Record the size of each candle — are they escalating or consistent in size?
Note the gap size between candle bodies — smaller gaps show smoother selling
Log the volume profile — did volume increase with each candle?
Track the session — do three black crows work better in certain sessions?
Record what came before — consolidation, rally, or resistance test?
What Is the Three Black Crows Pattern?
Three black crows is a bearish continuation pattern consisting of three consecutive downward candles, each with lower closes and opens within the previous candle’s body. The pattern signals strong, sustained selling momentum without gaps or large bounces.
What makes it reliable is the structure: each new candle opens inside the previous candle’s body rather than gapping further down, showing that sellers are not overextending — they are accumulating supply methodically. The progressively lower closes show conviction.
How to Identify the Three Black Crows
The Setup
Three black crows is most reliable when:
- After consolidation. The pattern appears following range-bound trading
- At resistance levels. The pattern emerges as price tests and breaks below resistance
- With volume confirmation. Volume should be above average or increasing across the three candles
The Structure
The three candles must have:
- Consecutive lower closes. Each candle closes below the previous candle’s close
- Overlapping opens. Each new candle opens within the previous candle’s body (inside range)
- Small wicks. Each candle should have minimal lower wick, showing conviction
- Similar size. The three candles should be roughly similar in size (within 10-20%)
Visual Examples
Clear three black crows on EURUSD D1:
- Candle 1: Open 1.2070, Close 1.2020
- Candle 2: Open 1.2050, Close 1.1950
- Candle 3: Open 1.1980, Close 1.1900
Notice: Each open is within the previous close (1.2050 is between 1.2020-1.2070). Each close is lower.
Weaker three black crows:
- Candle 1: Open 1.2070, Close 1.2020
- Candle 2: Open 1.2000, Close 1.1960
- Candle 3: Open 1.1930, Close 1.1890
Here, candle 3 gaps below candle 2’s close, suggesting overextension rather than methodical selling.
Trading Rules
Entry
Enter short on the close of the third candle or below its low on the next candle.
Conservative approach: Wait for the next candle to confirm below the third candle’s low, then enter on continuation. This sacrifices some price for confirmation.
The three candles are the setup. The actual trade confirmation comes from the close of the third candle or breakdown below it.
Target
Measure the total distance covered by the three candles (from the high of candle 1 to the low of candle 3). Subtract this distance from the close of the third candle.
Example:
- Candle 1 high: 1.2070
- Candle 3 low: 1.1900
- Distance: 170 pips
- Entry: 1.1900 (close of candle 3)
- Target: 1.1730 (170 pips lower)
Stop Loss
Place the stop above the high of the first black crow candle. This is the pattern invalidation point. If price closes above here, the selling momentum has broken and the pattern has failed.
Journaling Three Black Crows Trades
Three black crows are multiple-candle patterns with several measurable variables that directly impact outcome. Journaling reveals your personal edge.
For every three black crows trade, record:
- Candle sizes. Are they escalating in size, or consistent?
- Gap sizes. How much does each candle’s open exceed the previous close?
- Volume profile. Did volume increase across all three, or only some?
- Prior context. Consolidation, rally, or resistance test?
- Session. London, New York, Asian?
- Pattern completion rate. Did price hit the measured target?
After 25-30 three black crows trades, patterns emerge. You may find that three black crows after 3-4 weeks of consolidation work better than those after brief consolidation. Or that volume increases work 70% of the time while flat volume works 50%.
Common Mistakes
Trading without context. Three black crows in the middle of an established downtrend are weaker signals. The pattern is strongest after consolidation or at resistance. Context determines reliability.
Ignoring volume. Three black crows on decreasing volume lose conviction. Volume should be above average or increasing across the pattern.
Large gaps between candles. If the gap between candle opens is large, the pattern is not methodical selling — it is overextended selling, which often bounces.
Weak first candle. If the first candle is very small or has a large lower wick, the pattern lacks conviction. A clear, strong first candle sets up the pattern.
When It Fails
Three black crows fail when the momentum breaks — when a bullish candle closes above the open of the first black crow, reversing the selling momentum. This often signals a bounce in an overextended decline.
Failed three black crows sometimes reverse sharply as overextended sellers cover, especially on lower timeframes where the pattern can form over just 3 hours.
Journal every three black crows trade. Your data will show which contexts, timeframes, and volume conditions produce the most reliable continuations.
Track your three black crows pattern success rate with PipJournal. Measure your win rate after consolidation versus rally breakdown, by timeframe, by session, and by volume profile. All calculated from your journal data automatically. Start tracking.
Common Mistakes
Trading isolated three black crows in the middle of a downtrend — context matters
Weak volume on the candles — volume should be above average or increasing
Large gaps between candles — suggests choppy, weak selling rather than smooth momentum
Ignoring the first candle high — your stop depends on it being a genuine resistance
Frequently Asked Questions
What is the three black crows pattern?
Three black crows is three consecutive bearish candles with progressively lower closes. Each candle opens within the previous candle's body, and all close with small wicks. It confirms sustained selling momentum.
What is the difference between three black crows and a simple decline?
Three black crows is a specific pattern where each candle opens inside the previous body and closes progressively lower. A simple decline may have gaps between candles or larger bounces within the move.
How important is volume for this pattern?
Very important. Three black crows on increasing or above-average volume confirm strong selling. Three black crows on decreasing volume are less convincing and more likely to fail.
Can three black crows appear in an existing downtrend?
Yes, but they are more reliable when they appear after consolidation or at resistance levels. Three black crows in the middle of an existing downtrend are weaker signals.
What is the success rate of three black crows?
Three black crows have a 60-67% success rate when they appear after consolidation or at resistance with volume confirmation. Success rate drops to 45-50% when trading them in isolation.
How does PipJournal help track this pattern?
Tag every three-candle continuation trade and PipJournal segments your performance by context — after consolidation, at resistance, with volume increase, etc. Identify which contexts produce your best success rates.
Start Tracking Your Patterns
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