Thursday, January 12, 2023

Three White Soldiers

The three white soldiers candlestick pattern is a bullish reversal pattern that forms with three consecutive long white candlesticks. If analyzed further, the three white soldiers pattern is, in fact, synonymous with a long white candlestick, if one would combine the three candlesticks together into one, taking the open of the first candlestick and the close of the last candlestick.

After a decline, or down-trend, the three white soldiers pattern signals strong buying and weakness from the bears to keep the price down. Generally, the pattern is a confirmation on its own, that the tide has changed to the bulls’ favor, but in some cases, there is a retest of support established by the reversal.

 

In the above example, the price was in a strong down-trend prior to the three white soldiers formation. The price consolidated for about a few days immediately after the three black crows, providing longs an opportunity to enter the market while the price tried to retest the lows. Afterwards, the advance resumed, signalling the trend had reversed and the bulls had won the battle.

Chart Patterns Explained

Continuation Patterns

Reversal Patterns

Candlestick Patterns

ADVERTISEMENTS
Need A Business Loan? Borrow From A ForexTV Certified Partner

Welcome Back!

Login to your account below

Retrieve your password

Please enter your username or email address to reset your password.