A Study in Technical Analysis : Candlestick Part 2

A Study in Technical Analysis : Candlestick Part 2 - One Black Crow

Here is the link to my previous article on A Study in Technical Analysis : Candlestick Part 1 - One White Soldier : Link

ONE BLACK CROW

One Black Crow candlestick pattern is a Bearish Reversal Pattern used to predict the reversal of the current uptrend. The pattern consists of two consecutive long-bodied candlesticks - The first being a Bullish Candlestick followed by a Bearish Candlestick. This candlestick pattern rarely appears and if it does appear it can be quite strong.

The One Black Crow should have the following characteristics.

Bullish Candle followed by a Bearish Candle.

If it is during a long uptrend, The Bullish Candle must be a new high in the downtrend(Counter Trend Trade).

1. The Bearish Candle must open Below the Close of the Bullish Candle

Open2 Lower than Close1

2. Must make a lower high.

High2 Lower than High1

3. The Bearish Candle must close below the low of the Bullish Candle.

Close2 Lower than Low1

Once all 3 criteria are met, you have a One Black Crow candle pattern.

One Black Crow should appear :

1) At the Resistance of a Downtrend (Trend Trade)

2) At the Top of an Uptrend (Counter Trend Trade)

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