Bearish Identical Three Crows
The Identical Three Crows pattern is a bearish reversal pattern. It suggests a strong trend reversal
It is formed when during a downtrend, 3 candles are formed with a lower high and a lower low (suggesting a sell sentiment) while each candle opens with the previous candle close price.
How to identify
- Three consecutive long red days with lower closes each day.
- Each day opens at the previous day’s close.
This pattern could represent panic selling. Each closing price establishes the opening price for the next trading day. Additional downside price action should follow.