ThreeBlackCrows

Description

Three Black Crows pattern consists of three consecutive black bars that decline at or near the top of a bullish move and have real bodies that are roughly the same length.

If you see Three Black Crows, expect lower prices.

The three black bars comprising this pattern should close at or near the low. Further, the first black bar should open lower than the previous white bar's close.

Formula

ThreeBlackCrows(INPUT, Stringency=4, LRRange=10, LRType=3, CandleDeviation=0.17)=begin

  retval = NONUM

  targetBar = 0

  pnt1 = targetBar

  pnt2 = (targetBar + 1)

  pnt3 = (targetBar + 2)

  r1 = Range($1, pnt1)

  r2 = Range($1, pnt2)

  r3 = Range($1, pnt3)

  thisDev = DevRange($1, pnt1, 3)

  if BlackBody($1, pnt1) == TRUE AND BlackBody($1, pnt2)==TRUE AND BlackBody($1, pnt3) then begin

    if RealBodyHigh($1, pnt1) < RealBodyHigh($1, pnt2) AND RealBodyHigh($1, pnt2) < RealBodyHigh($1, pnt3) then begin

      if Stringency >= 5 then retval = '5'|clr_red|arrow|vertical|ftiny|above

      if RealBodyLow($1, pnt1) < RealBodyLow($1,pnt2) AND RealBodyLow($1, pnt2) < RealBodyLow($1,pnt3) then begin

        if Stringency >= 4 then retval = '4'|clr_red|arrow|vertical|ftiny|above

        if RealBodyHigh($1, pnt1) > RealBodyLow($1, pnt2) AND RealBodyHigh($1, pnt2) > RealBodyLow($1, pnt3) then begin

          if Stringency >= 3 then retval = '3'|clr_red|arrow|vertical|ftiny|above

          if Bullish($1, pnt3, LRRange, LRType) OR Bullish($1, pnt2, LRRange, LRType) OR Bullish($1, pnt1, LRRange, LRType) then begin

            if Stringency >= 2 then retval = '2'|clr_red|arrow|vertical|ftiny|above

  if thisDev < CandleDeviation then begin

              retval = 'Three Black Crows'|clr_black|arrow|vertical|ftiny|above

            end

          end

        end

      end

    end

  end

  retval

end

Parameters

INPUT

The INPUT directive makes this formula available as a Formula Overlay. INPUT refers to the instrument in the chart.

Stringency

The Stringency argument is used by nearly all candlestick overlays. It controls how many tests must pass in the evaluation of Three Black Crows. The lower the number, the more strict the interpretation.

The Stringency argument is an overlay parameter. You can adjust it using the Parameters dialog. The default is 4.

LRRange

The ThreeBlackCrows overlay uses the LR() function with either a continuous or quadratic calculation to determine how the market is trending. The LRRange (Linear Regression Range) parameter is the number of points in the Linear Regression calculation. The default is 10.

LRType

The LRType parameter has two possible settings: 2 and 3, or continuous linear regression and quadratic linear regression, respectively. The default is 3, or quadratic.

CandleDeviation

The CandleDeviation parameter sets a deviation between the three black real bodies of this pattern. The formula calculates a standard deviation of real body length. If the standard deviation is less than the CandleDeviation parameter, the pattern is valid. The default is 0.17.

Return Value

The return value is a string plot and varies depending on the value of the Stringency parameter.  The lower the number, the stronger the pattern.

Bearish indicators are rendered in red above the candlestick.

The string plot for a fully qualified Three Black Crows pattern is "Three Black Crows" rendered in black above the candlestick.

Examples

Comments

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