Friday, April 19, 2024

Three White Soldiers

The Three White Soldiers is a bullish Japanese candlestick reversal pattern consisting of three consecutive white candlesticks, each with a higher closing price.

The Three White Soldiers candlestick pattern travels upward, forming a ladder-like structure as the price climbs higher and higher.

This pattern usually indicates weakness in an established downtrend and a possible uptrend.

The opening price of each candle should be within the previous candle’s line, and the closing price should be close to the high point of the candle.

Three White Soldiers

Accreditation standards

To identify the three white pawn pattern, look for the following criteria:

  • There must be three long and bullish (i.e. white or green) candlesticks in a row.
  • The opening price of each candle must be higher than the opening price of the previous day. Ideally, it will open in the middle price range of the previous day.
  • Each candle must gradually open upward to establish a new short-term high.
  • The upper shadow/wick of the candle should be very small (or non-existent).

meaning

The Three White Soldiers pattern appears after a downtrend.

The bears were exhausted and the bulls were able to push the price higher, forming a strong reversal for three consecutive trading days.

Their advance conveys their power, changing sentiment from bearish to bullish.

Be sure to pay attention to the length of the candle.

The second and third candles should be roughly the same size as the first candle, confirming that the bulls are indeed in control.

If the third candle is smaller (or shorter) than the first two candles, you probably don’t want to question the three white soldiers.

This change in size (or height) will reduce the reliability of the pattern.

The biggest disadvantage of the Three White Soldiers pattern is that it can occur during a consolidation. This can lead to mixed emotions, so you can easily end up on the wrong side of the market.

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