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Three Black Crows

Three Black Crows

The "Three Black Crows" pattern is a bearish reversal pattern that appears in an uptrend. It is characterized by three consecutive long black candlesticks, each with a lower close and a lower high than the previous day. The pattern is considered to be bearish because it suggests that the bulls are losing control and the bears are taking over.
The Three Black Crows pattern is considered to be most reliable when it appears after a prolonged uptrend, or after a bullish reversal pattern has formed. To confirm the pattern, traders often look for other bearish indicators such as a bearish moving average crossover or a bearish divergence in the relative strength index (RSI).
To use the Three Black Crows pattern in trading, traders can look for the pattern to form and then enter a short position or sell a long position. Traders can also look for the pattern to form and then use it as a signal to place a stop loss or protective stop on a long position.
It's worth noting that the Three Black Crows is a bearish reversal pattern, it's not a very common pattern and it's not as reliable as other patterns. Some traders also use other technical analysis tools to confirm the pattern.
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