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Abandoned Baby
Advance Block
Belt Hold
Breakaway
Dark Cloud Cover
Deliberation
Doji Star
Dragonfly Doji
Downside Gap Three Methods
Downside Tasuki Gap
Engulfing
Evening Doji Star
Evening Star
Falling Three Methods
Gravestone Doji
Hanging Man
Harami
Harami Cross
Identical Three Crows
In Neck
Kicking
Meeting Lines
On Neck
Separating Lines
Shooting Star
Side By Side White Lines
Three Black Crows
Three Inside Down
Three Line Strike
Three Outside Down
Thrusting
Tri Star
Two Crows
Upside Gap Two Crows
Identical Three Crows



Pattern: reversal
Reliability: high

Identification
Three black days occur with each day opening where the previous day closed.

The Psychology
In an uptrend three successive days open at the previous day's close and close down on the day. This pattern is more severe than the Three Black Crows pattern and thus has a higher reliability as a reversal pattern.



TJX formed two Identical Three Crows formations in short order in the early fall months of 2003. You can see that by the time the pattern forms the stock will have already dropped quite a bit, so most likely you would be exiting a long or going short a little late. Also notice how resistance in July became support in September and support in August remained support in September. Shorting after the second pattern would have been foolish because the stock was right at support. Again, you must look at the big picture when making trading decisions.

 

 

 

 

 

 

 

 



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