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This pattern is a strong indicator of a reversal of a trend in the market. This pattern comes in an uptrend and it consists of three black candles.
The opening price of each day is higher than the previous day's closing price. These black candles are formed on 3 consecutive days that have finished at a lower price than the previous day.
It is clear to see that the bears have now taken control and the market has turned bearish.
Please click on picture above to get a larger picture
Most candlestick patterns should appear close to previous resistance or support levels depending on what type it is. You should only trade a candlestick pattern if it's near these levels.
Don't trade using these patterns if it's not at the top or bottom of a trend. These patterns appear a great deal so you have to make certain you only trade at the right level.
This is very important as you will end up over trading them and you will end up losing more money than you imagined.
