Three white soldiers

Three white soldiers is a candlestick chart pattern in the financial markets. It unfolds across three trading sessions and represents a strong price reversal from a bear market to a bull market. The pattern consists of three long candlesticks that trend upward like a staircase; each should open above the previous day's open, ideally in the middle price range of that previous day. Each candlestick should also close progressively upward to establish a new near-term high.[1]

The three white soldiers help to confirm that a bear market has ended and market sentiment has turned positive. In Candlestick Charting Explained, technical analyst Gregory L. Morris says "This type of price action is very bullish and should never be ignored."[2]

This candlestick pattern has an opposite known as the Three Black Crows, which shares the same attributes in reverse.

Three White Soldiers vs. Three Black Crows.

It's worth noting that the Three White Soldiers pattern has an opposite counterpart known as the Three Black Crows. While both patterns consist of three candlesticks, they represent contrasting market sentiments.

the Three White Soldiers signals a bullish reversal, implying the end of a bearish trend and the initiation of a bull market. On the other hand, the Three Black Crows pattern signifies a bearish reversal, indicating the end of a bullish trend and the beginning of a bear market.[3]

See also

Notes
  1. "Japanese Candlesticks". Retrieved 15 June 2010.
  2. Morris, Gregory L.; Litchfield, Ryan (2005). Candlestick Charting Explained (3rd ed.). New York, NY: McGraw-Hill. p. 126. ISBN 0-07-146154-X.
  3. "Understanding the Three White Soldiers Candlestick Pattern: A Comprehensive Guide". Prathamesh Tawde. 2023-07-25. Retrieved 2023-07-25.

References
  • Candlestick Charting Explained by Gregory L. Morris. Published by McGraw-Hill. ISBN 0-07-146154-X
  • Japanese Candlestick Charting Techniques by Steve Nison. Published by New York Institute of Finance. ISBN 0-7352-0181-1
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