Today let's learn about another important chart pattern called the Three Black Crows. This is a bearish candlestick pattern that is used to signal a reversal in the current uptrend. The pattern consists of three long black candlesticks falling one after the other with each candle's open occurring within the body of the previous candle. 

To recap an earlier discussion of ours a black or a colored candlestick would mean that the closing is lower than the opening. Therefore, the opening price of the candlesticks in question is at the top of it and you can see that the opening of the 2nd candlestick is falling within the body of the 1st candlestick and the opening of the 3rd candlestick falling within the body of the 2nd candlestick. 

BUY/SELL Signals

So if you spot Three Black Crows near the top of an uptrend stock chart the good times are about to change. But forewarned is forearmed! In other words this is a SELL signal. But as we always remind you, chart signals should not be used in isolation.