The three black crows candle formation does not happen very frequently in Forex trading, but when it does occur swing traders should be very alert to the crow’s caw.
The candlestick’s metaphor is three crows sitting in a tall tree. On the day the first black crow makes its appearance, formation is most predictive if the first “crow” or dark candlestick closes below the previous candle’s real body. Two more long-bodied consecutive down days then ensue. On each of these days, it appears as if the stock wants to regain its former strength, as the Forex pair opens higher than the close on the previous day.
By the end of each session, however, the sellers regain control and the Forex pair drops to a new closing low. This happens when a bullish trend has been in effect and liquidity or bearish trading is in control for three days, but afterwards the major bullish trends restarts up in the major trend direction.
The candlestick’s metaphor is three crows sitting in a tall tree. On the day the first black crow makes its appearance, formation is most predictive if the first “crow” or dark candlestick closes below the previous candle’s real body. Two more long-bodied consecutive down days then ensue. On each of these days, it appears as if the stock wants to regain its former strength, as the Forex pair opens higher than the close on the previous day.
By the end of each session, however, the sellers regain control and the Forex pair drops to a new closing low. This happens when a bullish trend has been in effect and liquidity or bearish trading is in control for three days, but afterwards the major bullish trends restarts up in the major trend direction.