The three black crows candlestick pattern is a bearish reversal pattern that often appear at the end of a bull run. This bearish candle pattern is made up of 3 large bearish bar that closes lower than the previous bar.
The diagram above shows how the pattern looks like. The stock will be in an uptrend or has run up quite a lot. Then a bearish candle appears. The next day, another bearish candle appear and closes lower than the previous candle. The 3rd day another bearish candle appears to complete the pattern. The stock will usually drift down and collapse after the pattern appears.
The chart above shows ULTA which had a nice gap up and bullish candle around mid October. Then a bearish candle appeared with another 2 forming and closing below the previous candles. This pattern was completed and look at how the stock drifted lower from there.
Dec 03, 18 08:16 AM
With an agreement to pause the trade war, Dow is about to jump 450 points higher, but will this rally sustain and go even higher? Lets take a look at the charts.
Nov 29, 18 07:51 AM
Yesterday we saw a huge big rally 600 ++ points. The question now is this rally sustainable and will we have a beautiful Christmas in the stock market this year. Here are a few things to look out for…
Nov 29, 18 07:35 AM
This sideways movement in the KLCI is really giving investors and traders a headache. What we are experiencing now is a volatility contraction which is often followed by volatility expansion.
Nov 26, 18 08:52 AM
As the techs reach an area of long term support, its going to be a choppy ride as the market decides whether support will hold or the downtrend continues...
Oct 30, 18 06:35 AM
As we close out the month of October 2018, what is in store for us? Let us take a look at the charts and see what they might be telling us.