NIFTY indicates bearish reversal : Three Black Crows

I have been enjoying recent market volatilities as they provide me good opportunities to buy stocks at lower valuation , and such volatility makes interesting chart patterns which I enjoy studying and analyzing. So, please dont take my views too seriously.

NIFTY , has been closing on lower side for last three trading sessions and on the candle stick chart it has appeared as Three Black Crows. Three black Crows is considered as the bearish reversal particular when the price has been in continuous uptrend, which is the case with NIFTY.Ordinarily one black candle indicate the interference in bullish trend , second black candle confirm bearish mood, perhaps by the way of profit booking and third consecutive black candle make the reversal obvious.

Recognition Criteria for Three Black Crows:

1. Market is characterized by uptrend.
2. Three consecutive long black candlesticks appear.
3. Each day closes at a new low.
4. Each day opens within the body of the previous day.
5. Each day closes near or at its lows

Therefore, in short term market move to lower levels. However, large selling pressure is not expected as there no negative news. Perhaps  traders may want  wait till new bullish signal appears on the chart.

More readings on Three Black Crows.

• http://www.fxwords.com/b/bearish-three-black-crows-candlestick
• http://www.leavittbrothers.com/education/candlestick_patterns/bear/three_black_crows_bearish.cfm
• http://www.candlesticker.com/Cs74.asp
• http://www.optionsoutlet.com/stock_ebooks/candlesticks/bullish_3blackcrows.html