Mastering Candlesticks: One Black Crow

​What is it?

The One Black Crow candlestick pattern is made up of two candlesticks and starts with a long bullish white candle. It is followed by a long black candle which opens and closes lower than the previous white candle’s open and close. Remember, both candles in this pattern should be long candlesticks.

Where is it?

The One Black Crow candlestick pattern occurs at resistance with two candles of alternating color. The first day’s large white candle is a signal the bulls are in control; however, the second day’s strong black candle is a signal the bears have harnessed control, and the previous rally is now in trouble. This may seem trivial but the fact the bulls could not hold their ground is a significant development in the sentiment of this trade and a clear indicator the bears are coming in strong. When you find this pattern at resistance, it is a strong indication of a bearish reversal.

What Should I Do When I See This Pattern?

  • Tighten any stops you might have in a bullish trade
  • Consider closing any bullish trades
  • Get ready to possibly reverse your position into a bearish trade
  • Watch for additional confirmations of a new bearish trend

If you do enough candlestick analysis, you will be pleased to find that the majority of the time, when the one-black crow shows up at resistance, it leads to a short-term reversal.