Three White Soldiers

AAA

DEFINITION of 'Three White Soldiers'

A bullish candlestick pattern that is used to predict the reversal of the current downtrend. This pattern consists of three consecutive long-bodied candlesticks that have closed higher than the previous day, with each session's open occurring within the body of the previous candle.

Three White Soldiers

INVESTOPEDIA EXPLAINS 'Three White Soldiers'

These long-bodied candlesticks are a sign of the change in investor sentiment and are used by traders to confirm a shift in momentum. This pattern may form after a period of consolidation, which is still a valid sign of a move higher, but it is not as desirable as it would be if it were found at the end of a prolonged downtrend.

RELATED TERMS
  1. Real Body

    In candlestick charting this is the wide part of a candle that ...
  2. Momentum

    The rate of acceleration of a security's price or volume. The ...
  3. Reversal

    A change in the direction of a price trend. On a price chart, ...
  4. Downtrend

    Describes the price movement of a financial asset when the overall ...
  5. Uptrend

    Describes the price movement of a financial asset when the overall ...
  6. Candlestick

    A chart that displays the high, low, opening and closing prices ...
RELATED FAQS
  1. How do I build a profitable strategy when spotting a Three White Soldiers pattern?

    A profitable trading strategy can be implemented based on the strong market reversal signal given by the three white soldiers ... Read Full Answer >>
  2. How effective is creating trade entries after spotting a Three Black Crows pattern?

    The three black crows pattern, like its bullish counterpart, the three white soldiers, is considered a reliable reversal ... Read Full Answer >>
  3. How do I implement a forex strategy when spotting a Three White Soldiers Pattern?

    A forex trading strategy based on identifying a three white soldiers candlestick pattern is designed to profit from the pattern's ... Read Full Answer >>
  4. How do I implement a forex strategy when spotting a Three Black Crows Pattern?

    A common forex trading strategy implemented when a trader identifies the three black crows pattern is to sell short in accord ... Read Full Answer >>
  5. How are Three White Soldiers patterns interpreted by analysts and traders?

    The three white soldiers pattern and its bearish counterpart, the three black crows, are considered fairly robust reversal ... Read Full Answer >>
  6. How effective is creating trade entries after spotting a Three White Soldiers pattern?

    The three white soldiers candlestick pattern is the essence of a bullish trend and thus makes a powerful reversal signal ... Read Full Answer >>
  7. What do you call a candlestick with no shadows, and what does it mean?

    A candlestick with no shadow is regarded as a strong signal of conviction by either buyers or sellers depending on whether ... Read Full Answer >>
  8. What do the different colored candlesticks mean?

    Candlestick charts have been used in Western trading for many years and are a very popular method of plotting the price action ... Read Full Answer >>
Related Articles
  1. Active Trading

    Candlesticks And Oscillators For Successful Swing Trades

    Take advantage of short-term price moves by pinpointing reversals.
  2. Charts & Patterns

    Advanced Candlestick Patterns

    Go beyond the basics! Learn to identify and trade island reversals, kicker patterns and more.
  3. Chart Advisor

    Stock Chart Patterns to Keep an Eye On

    Some of these stocks are exhibiting big chart patterns, so a breakout is likely to be significant.
  4. Fundamental Analysis

    Calculating Valuation

    Valuation is the process of determining what an asset is worth.
  5. Chart Advisor

    ChartAdvisor for July 24 2015

    Weekly technical summary of the major U.S. indexes.
  6. Chart Advisor

    Four Slumping Stocks to Consider Shorting

    These down trending stocks have recently made a move to the upside, but it's more likely a signal to short than to buy.
  7. Chart Advisor

    Stock Breakouts Happening Now or Imminent

    These stock are breaking out--or close to breaking out--of chart patterns, likely signaling the direction of the next trending move.
  8. Chart Advisor

    Traders Turn To Aerospace and Defense Stocks

    Recent news from Lockheed Martin and United Technologies has put the Aerospace & Defense sector on trader's radar. We'll take a look at how to trade the news.
  9. Charts & Patterns

    What Makes Tesla's Business Model Different?

    Tesla did not invent the first electric car. What it did invent was the first successful business model for bringing compelling electric cars to the market.
  10. Technical Indicators

    Use the Vortex Indicator Trading Strategy To Profit

    The vortex indicator is a relatively new technical indicator, introduced in 2010, that is gaining traction with traders and market technicians.

You May Also Like

Hot Definitions
  1. Unfair Claims Practice

    The improper avoidance of a claim by an insurer or an attempt to reduce the size of the claim. By engaging in unfair claims ...
  2. Killer Bees

    An individual or firm that helps a company fend off a takeover attempt. A killer bee uses defensive strategies to keep an ...
  3. Sin Tax

    A state-sponsored tax that is added to products or services that are seen as vices, such as alcohol, tobacco and gambling. ...
  4. Grandfathered Activities

    Nonbank activities, some of which would normally not be permissible for bank holding companies and foreign banks in the United ...
  5. Touchline

    The highest price that a buyer of a particular security is willing to pay and the lowest price at which a seller is willing ...
  6. Himalayan Option

    An exotic equity option belonging to a class known as mountain range options. Himalayan options are based on a basket of ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!