Three Black Crows
The 3 Black Crows is a candlestick pattern that doesn´t happen that frequently, but if you see one, sit up and pay attention.
It´s a bearish formation that usually best spotted on a daily chart when you are trying to figure out how a stock is moving from day to day.
What you have is price declining for three days in a row with one important aspect:
The opening price of the second day must be close to or even to the previous day closing price.
If you have major gaps between the previous day closing price and second day open price, the pattern could get thrown off.
Same rule applies to the third day candle relative to the second day.
This patter could be used along with support levels and MACD to predict a bounce in a stock at about 65% accuracy.
