Three Black Crows
Three consecutive falling candles with substantial bodies, each opening within the previous body and closing near its own low.
How it is identified
Test: three consecutive candles with Close < Open, each Open inside the previous body, each Close near its own Low
Unit
qualitative
In depth
The mirror of three white soldiers, describing three sessions of sustained selling with little intraday recovery. In Indian small and mid-caps this formation frequently coincides with successive circuit-limited sessions, in which case the shape reflects an inability to trade rather than an orderly market opinion. By completion the move is already large, which is the recurring limitation of multi-period patterns as entry signals. No claim about subsequent direction is made in this dictionary.
Worked example
Candles of ₹524 to ₹508, ₹512 to ₹490 and ₹494 to ₹472, each closing within ₹2 of its low. Price has fallen 52 / 524 = 9.9% across the three sessions.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Three Black Crows” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.