Three Black Crows sometimes called Three Winged Crows. Such names associated with Japanese saying:” The bad news has wings.” This proverb suits well to the meaning of the pattern. This model, how you could see from the name, consists of the three black(downing) candles. Picture – the sinister group of crows, sitting on the high dead tree.
Likewise, Two Black Crows pattern, Three Black Crows consists of black candles, only it has three in a row. Three Black Crows predicts reversion of the rising trend. Close prices of all three candles must be close to the Low price of the previous candle. Open price of each candle must be in the range of the body of preceding candle. The pattern has more power if the body of the first black candle are lower than High of the previous white (uptrend) candle.
Psychology of this model are similar to the Two Crows patterns psychology; only this pattern has a stronger influence on the market. Three Black Crows does not need any confirmation. In a nutshell, this pattern is Two Crows, confirmed by one more black candle.