Bearish 3 Black Crows Reversal Cryptocurrency Chart Pattern.

Crypto Candlestick Chart Pattern Recognition: Bearish 3 Black Crows Reversal pattern

By analyzing the most recent OHLCV price movements of the last days. Daily updated!

Bearish Three Black Crows Candlestick Pattern

The Bearish Three Black Crows pattern is a prominent indication of a strong reversal in the market, signaling the transition from a bullish to a bearish trend. This pattern is characterized by three consecutive long-bodied, downward candles following an uptrend. Each of the "crows" opens within the previous candle's body and closes lower, emphasizing the dominance of the sellers in the market.

Formation of the Bearish Three Black Crows Pattern:

• The pattern begins with a strong bullish candle, indicative of the ongoing uptrend.
• The first "crow" is a bearish candle that opens below the close of the preceding bullish candle and closes lower, indicating the beginning of a potential downtrend.
• The second "crow" is another bearish candle that opens within the body of the first "crow" and closes even lower, confirming the presence of sellers.
• The third "crow" is similar, opening within the body of the second "crow" and closing lower, cementing the bearish reversal.

In the Bearish Three Black Crows function:

• upCandle($first_day) checks that the pattern starts with a bullish candle.
• down Candle ($second_day) and down Candle ($third_day) ensure the next two candles are bearish.
• Conditions like $second_day['open'] < $first_day['close'] and $second_day['close'] < $second_day['open'] validate the positioning and body length of the "crows".
• The sequence ensures each "crow" opens within the body of the preceding candle and closes lower, confirming a strong bearish sentiment.

Traders often consider the Bearish Three Black Crows as a warning sign to either exit long positions or prepare for a potential downtrend. It's crucial to consider other technical factors and indicators to validate and complement this pattern before making trading decisions.