Three Black Crows
BearishReversalBeginnerThree heavy red candles in a row, each closing near its low.
Verdict: SkipBitcoin 4H: 4 trades, won 100%, avg trade +3.6% vs random day −0.4% (too few trades to judge). Backtest
Price has been rising, then it goes flat. Buyers are tired, but sellers aren't sure yet.
step 1/7
Trade rules
| Direction | Short (sell) |
|---|---|
| Entry | After a rally or a flat top: three red candles in a row, each opening inside the last body, closing lower and near its low. Then a candle CLOSES below the third one's low within 3 candles. |
| Cancelled if | Price trades above the first crow's high before that close. |
| Target | 2x the pattern, projected from the breakout |
3 common mistakes
- Counting small candles: each crow needs a real, full body.
- Ignoring long lower wicks: they show buyers stepping in at every low.
- Shorting it after a long decline instead of after a rally or a top.
Backtest
same rules every time · equal size · no fees · method| Market | Trades | Won | Avg trade | Random day |
|---|---|---|---|---|
| Bitcoin · 4H · 2017-2026 · too few trades to judge | 4 | 100% | +3.62% | −0.41% |
| US large caps (50) · 1D · 2016-2026 | 23 | 44% | −1.19% | −0.93% |
Verdict: SkipLost money on average on US large caps. Bitcoin had too few signals to judge.
pattern −27%random −21%