Three White Soldiers


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

BREAKING DOWN '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.

  1. Real Body

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

    A change in the direction of a price trend. On a price chart, ...
  3. Momentum

    The rate of acceleration of a security's price or volume. The ...
  4. Candlestick

    A chart that displays the high, low, opening and closing prices ...
  5. Downtrend

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

    Describes the price movement of a financial asset when the overall ...
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  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 >>

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