Price Action- Three Black Crows

This is a very simple setup. No indicators needed just simple price action. You do need to know your candlestick patterns. I will give you all the patterns you need to know and their explanations. This spread betting strategy is applied to BARCLAYS spreadbetting  shares , but it is a pattern you can also apply to Forex spread betting, commodities, Indices.

The main setup is to look for prices moving higher in a minor or major price trend. When the retracement occurs and the retracement is a 3 black crow candlestick pattern that stalls on the Moving Average (10 – 20 – 50) this is a good indicator to buy the shares. See the spreadbetting example below:

The buy signal after the 3 black crow candlesticks is stronger if followed by a bullish pattern like the bullish harami pattern:

The down trend stalls, runs into a sideways movement then followed by a breakout.

here is another spread betting example of the three 3 black crow candlesticks followed by a Gap up pattern. If the Gap up window is not closed this becomes a support and short term bullish pattern.

A variation of this spread betting system, is to look for the three black crows on the daily chart. If the forth day does not fall further and a sideways trend occurs on a 15 min time frame.  In the bigger picture you will see three black crows followed by a Bullish Harami. On the 5th day look for a break out from the previous day’s range to the up side.

what does it look like on a daily chart:

As prices move higher use your money management to move your stoploss higher.

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