******** Candlestick Reversal Pattern Probability High ***********

Bearish Reversal Pattern
Three Black Crows is a strong reversal sign that the bullish trend may end. In fact many would consider this as too late to enter short and far too late to cover shares purchased long.

Characteristics
After an upward trend three large red candlesticks appear showing strong selling sentiment.

 

Each green candlestick closes at a new low. The floor is falling and there is no support.

 

Each red candlestick opens within the body (or even better below half the body) of the previous candle.

Confirmation
In this case confirmation has already occurred. You may be late to the trade if you entered now but probability of downward trend continuation is on your side as no support point has help.

1. This is a definite end to an upward trend. If you are long you should already have gotten out because clearly the feelings of buyers have changed and sellers are now forceful and dominating.

 

2. Something very psychological has happened at this level. It is either a whole number with tremendous strength or has shown enormous resistance at that level to create such a strong change in sentiment.