All About Three White Soldier Candlestick Pattern

Do you want to march into the market if you see three white soldiers?

Three candles are able to form three white soldiers, which indicate a trend reversal. Technical traders use it to determine if there is an entry into the market.

Japanese candlesticks, which are unusual formations in daily trading charts, give traders an indication of price movement by capturing the opening and closing prices along with high or low. It can be challenging for new traders to understand candlestick charts. They need to learn about the different formations in order to recognize them on daily trading charts and plan their strategies around them.

Three white soldiers are distinguished from other candlestick patterns by their unique arrangement in a downward trend. These candles have long bodies and each one has an opening in the body of the next.

What does the 3 White Soldiers pattern tell you about the market?

Three white soldiers can be a reliable indicator of a trend reversal.

Three candles with long bodies signify gradual upward movement. Each opening within the body is a higher opening and closing. This indicates a strong change in trend. To avoid retracement, traders must consider the size and shape of shadows and candles. A candle that forms without a shadow indicates that the bullish trend is still dominant and the price closed in the higher range.

Three white soldiers candlestick patterns are common after Dojis, which suggests a trend reversal.

How to identify the three white soldiers in a trading table

  • It forms at the conclusion of a downtrHow do I identify three white soldiers in a trading chart?
  • A white body is used for the first candle that forms in a downtrend.
  • The second candle is located within the body of first candle, and it closes above it.
  • The third candle opens higher that the first candle, and then closes over it.
  • It is the opposite of three black Crows. It is also known as three red soldiers in Japan, the country where candlestick patterns were first created.
  • This indicates that bull has taken control of the market and traders are able to enter into long positions.

Creating a Trading Strategy around Three White Soldiers

The three white soldiers are a sign that traders consider bullish trend reversal. Traders who are short plan an exit, while traders looking for an entry point will keep their position. Overbuying can sometimes lead to excessive enthusiasm. You may see the relative strength index cross the 70 mark. This could be used to test market resistance, while the bullish trend reversal strikes. The market is bullish overall, though there may be brief phases of consolidation.

The Differences Between Three Black Crows

On the opposite side of the spectrum, three black crows are found. It is composed of three long-bodied candles, each one within the body the previous and closing lower than it. Bearish sentiment is expressed by three black crows. This suggests that bear has taken control of the market and traders should exit long positions. Both formations have their limitations. Traders must confirm trend reversal using volume and other trading tools

Limitation of Three White Soldiers

Three white candles may not be enough to signal significant market change, as with other chart patterns. Because of the three consecutive rising candles, and almost complete absence of the upper shadow, it is considered an upward trend reverse pattern. It can also occur after a brief period of consolidation.

Long candles may indicate excessive upward pull. This could be due to traders overbuying or pushing the market too hard too soon after a trend reversal. These uncertainties make it crucial to confirm your trading results with other tools and in the volumes of future sessions.


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