Three Black Crows is one of the powerful Bullish trend reversal Candlestick pattern. It consists of 3 Candlesticks, each with long black body. Each day should open middle of previous day's black body and close below previous day's low. Every day stock will be forming lower low, which eventually will take the stock to lower level.
Usually There Black Crows will occur at the end of the Bull market. It signifies the change in the market trend from Bull to Bear or Bull to range bound. Sometime this pattern may also occur when strong Bear market condition in place.
One can go short on the stock by keeping the first day's high as stop loss. After completion of Three Black Crow stock will find it hard to go above the first day high. Going short may not be a best idea, because by the time stocks completes Three Black Crow, it will be far away from the peak (may be 5% or more). So the stop loss will also become big in size. It will be a good idea to short after a minor pull back.
Usually There Black Crows will occur at the end of the Bull market. It signifies the change in the market trend from Bull to Bear or Bull to range bound. Sometime this pattern may also occur when strong Bear market condition in place.
One can go short on the stock by keeping the first day's high as stop loss. After completion of Three Black Crow stock will find it hard to go above the first day high. Going short may not be a best idea, because by the time stocks completes Three Black Crow, it will be far away from the peak (may be 5% or more). So the stop loss will also become big in size. It will be a good idea to short after a minor pull back.