What is Three White Soldiers Patterns?
The Three White Soldiers pattern is a K-line combination consisting of three consecutive rising candles, forming a bullish reversal pattern. When this pattern appears, it often indicates a bullish trend. Specifically, the candlestick pattern appears as follows:
If the Three White Soldiers pattern occurs during a downtrend, it is generally a strong signal of a market reversal. If the price trend of the Three White Soldiers appears after a long period of consolidation, and is accompanied by gradually increasing trading volume, it may indicate the start of a bull market and should be closely watched.
The following image shows an example of the Three White Soldiers pattern in a price trend. In actual use, we should still combine it with the market situation for specific analysis.
Characteristics of the Three White Soldiers pattern:
- The Three White Soldiers pattern occurs at the market bottom.
- The price breaks through an important resistance level, forming an upward trend and pulling out the first white candle, and then continues to rise with two more white candles.
- Each time the price rises, it generally closes with a bullish candle, indicating strong buying momentum.
- The three candles forming the Three White Soldiers pattern have approximately equal bodies.
At the market bottom, the bears are no longer able to push the price down, and the bulls see the price as oversold and begin buying. Those who are neutral evaluate the balance of power and enter the market to establish a long position. The market is influenced by this collective action, forming a three-day continuous upward trend. The Three White Soldiers pattern indicates that the bullish momentum has just begun and will continue to rise as the momentum builds.
The Three White Soldiers pattern consists of three consecutive bullish candlesticks rising upward, forming a bullish reversal pattern. It is a common K-line combination, and when this combination appears, the future trend is mostly expected to be bullish. The specific display of candlesticks is as follows:
If the red Three White Soldiers pattern occurs in a downtrend, it is generally a strong signal for the market to reverse; if the price shows the trend of the Three White Soldiers pattern after a long period of horizontal trading, and is accompanied by gradually increasing trading volume, it is the prelude to the start of a bull market and should be closely watched.
The following figure is an example of the Three White Soldiers pattern in a trend. In actual use, we still need to combine the market situation for specific analysis.
Application strategy:
- Find the important support level below the Three White Soldiers pattern, such as the golden ratio. If there is important support below, consider setting the stop loss below this support level.
- Judge whether it is worth opening a position by combining the overall risk-reward ratio and success rate of the K-line trading premise.
- In a suitable opening situation,
- When the first bullish candlestick appears and rises upward with the support of an important support level, aggressive traders can enter the market and establish a small trial order, and the stop loss should be set below the important support level.
- On the second day, if the price trend follows the standard and meets the Three White Soldiers pattern, long positions can be continued to be held, and those who have not entered earlier can also enter long positions.
- On the third day, the Three White Soldiers pattern is established, which is an opportunity to continue to establish long positions.
See the example chart below：
