How To Use Three Black Crows Candlestick Pattern Effectively In Crypto

How To Use Three Black Crows Candlestick Pattern Effectively In Crypto

It is one of the strong reversal signals for market top fishing transactions. Although the Three Black Crows candlestick pattern rarely appears, it offers an almost absolute price reversal rate in Crypto. Today’s posts of How to trade will introduce you to this special candlestick pattern and how to use it in Crypto trading in an optimal way.

What is a Three Black Crows candlestick pattern?

Three Black Crows (TBC) candlestick pattern is a warning signal about the upcoming downtrend in Crypto. It usually appears after an uptrend and consists of three red bearish candles in a row.

What is a Three Black Crows candlestick pattern in Forex?
What is a Three Black Crows candlestick pattern in Crypto?

Characteristics of the pattern

The pattern consists of 3 candlesticks.

+ First candlestick: is a red bearish candle.

+ Second candlestick: is also a red bearish candlestick. It has an opening price laid within the first candlestick, with a short or without a shadow.

+ Third candlestick: is a red candle again. It has an opening price laid within the second candlestick. Its closing price is close to the lowest price of the 2nd candlestick.

Meaning

The price always creates the Three Black Crows pattern at peaks in Crypto. It alerts traders that a downtrend is about to take place.

Meaning of the pattern
Meaning of the pattern

Or sometimes the market is moving sideways. Suddenly, the pattern appears, indicating that the price will collapse, forming a downtrend.

When the pattern appears, it indicates that the price will collapse and form a downtrend.
When the pattern appears, it indicates that the price will collapse and form a downtrend.

Variant candlestick patterns

In addition to the standard TBC pattern, there are also variants with different shapes on the price chart in Crypto. In terms of meaning, they all bring bearish signals to investors.

In terms of meaning, they all bring bearish signals
Although there are many variant patterns, they all bring bearish signals

How to trade Crypto effectively with the Three Black Crows pattern

Here, I will show you how to place a basic Crypto order using the Three Black Crows candlestick pattern. Please note that this is a bullish to bearish reversal pattern. Therefore, you can only open SELL orders with this candlestick pattern. Open a SELL order as follows:

+ Entry Point: As soon as the price completes the pattern.

+ Stop-Loss: At the highest price level before the price turns down and creates the pattern.

+ Take-Profit: When the price touches old support levels that have been formed in the past.

How to trade Forex effectively with the Three Black Crows pattern
How to trade Crypto effectively with the Three Black Crows pattern

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