The Three Black Crows is a bearish candlestick pattern used in technical analysis to signal a potential reversal of an uptrend. Three consecutive long-bodied bearish (red or black) candles open within the previous candle’s body and close near their lows, indicating strong selling pressure.

Interpretation:
Bearish Reversal Signal – The pattern suggests buyers are losing control, and sellers are dominating, leading to a possible downtrend.

Confirmation – Traders often look for additional confirmation, such as high trading volume or a break below support levels, to validate the reversal.

Psychology – Each candle represents increasing pessimism, with the third candle reinforcing the bearish momentum.

False Signals – If the pattern appears after a mild uptrend or in a sideways market, it may not be as reliable.

Contrast with Three White Soldiers – The opposite bullish pattern confirms an uptrend reversal.

Limitations:
Works best after a prolonged uptrend.

Requires confirmation from other indicators (e.g., RSI, MACD).

Traders often use the Three Black Crows to exit long positions or initiate short trades, but risk management (stop-losses) is crucial to avoid false breakdowns.