The three white soldiers pattern and its bearish counterpart, the three black crows, are considered fairly robust reversal signals by both analysts and traders.The bullish pattern consists of three consecutive long-bodied candlesticks that open within the previous candle's real body and close above the previous candle's high.
Key Takeaways
- The three white soldiers pattern is a chart pattern seen in technical analysis.
- Analysts and traders consider the three white soldiers pattern a fairly robust reversal signal.
- The bullish pattern consists of three consecutive long-bodied candlesticks that open within the previous candle's real body and close above the previous candle's high.
- The three white soldiers most typically occurs at the end of a downtrend, but it can also appear after a period of consolidation, which is not considered a strong bullish signal.
- The three white soldiers pattern's bearish counterpart is the three black crows pattern, which is also considered a significant signal.
Whythe Three White Soldiers Pattern Is a Bullish Indicator
Typically occurring at the end of a downtrend, the three white soldiers consists of three large bullish candles, each closing higher than the last. However, there should be no gaps between candles—each candle opens within the body of the one preceding it.
In addition, the upper wicks are short or non-existent, indicating that bulls managed to keep the price of the security near the height of its range for the period. The wide trading range reflected in the large bodies of all three candles and the lack of any substantial upper shadow indicates the strength of bullish momentum. As with any reversal pattern, an expansion on volume accompanying the three white soldiers lends additional strength to the signal.
Try to Seek Out Additional Chart Confirmation
While the three white soldiers typically appearat the end of a bearish trend, it can also appear after a period of consolidation, though this is not considered a strong bullish signal. In addition, it is possible for this pattern to be almost too robust. A series of three bullish candles that are extremely large can indicate that the bullish opposition has overextended itself by pushing too hard too quickly.
Because of this potential ambiguity, it is important to look for additional chart confirmation of the bullish reversal. Additional bullish price action is always the best confirmation, but solid volume in subsequent sessions and proximity to a support level also strengthens the signal.
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FAQs
The three white soldiers mean that there is a steady advance of buying pressure following a downtrend. Bullish patterns like these often signal a reversal of price movement. Some traders consider opening a long position to profit from any upward trajectory when they see the three white soldiers pattern.
What does the 3 white soldiers pattern mean? ›
The three white soldiers candlestick pattern is typically observed as a reversal indicator, often appearing after a period of price decline. This chart pattern suggests a strong change in market sentiment in terms of the stock, commodity, or forex pair making up the price action on the chart.
What is the difference between 3 black crows and 3 white soldiers? ›
The open occurs within the previous candlestick's real body, and the close occurs above the previous candlestick's close. Three white soldiers are simply a visual pattern indicating the reversal of a downtrend whereas three black crows indicate the reversal of an uptrend.
What is the 3 candlestick rule? ›
This triple candlestick pattern indicates that the downtrend is possibly over and that a new uptrend has started. For a valid three inside up candlestick formation, look for these properties: The first candle should be found at the bottom of a downtrend and is characterized by a long bearish candlestick.
What is the 3 doji pattern? ›
A tri-star is a three line candlestick pattern that can signal a possible reversal in the current trend, be it bullish or bearish. Tri-star patterns form when three consecutive doji candlesticks appear at the end of a prolonged trend.
What does three black crows mean? ›
The Three Black Crows pattern is a technical analysis tool traders use to identify potential reversals in the market. It is formed when three consecutive bearish candlesticks appear, indicating a shift in sentiment from bullish to bearish.
What does a 3 green candle mean? ›
Three white soldiers
It consists of consecutive long green (or white) candles with small wicks, which open and close progressively higher than the previous day. It is a very strong bullish signal that occurs after a downtrend, and shows a steady advance of buying pressure.
What does it mean when you see a crow on your front lawn? ›
This means that crows can be considered a good omen or a bad omen, depending on the number of crows and the context. "Seeing a single crow is often thought to be a bad omen, but seeing two could indicate good luck is coming," says Compora. "Seeing three suggests impending change."
What does 4 crows mean spiritually? ›
Sometimes crows mean good luck if you see two, bad if you see one, health if you see three, wealth if you see four. To some, such as Native Americans, crows are seen as gods, and spirit guides.
What do crows symbolize? ›
Crows have long been associated with transformation and rebirth in cultures around the world. While they are often linked to death and the occult due to their scavenging nature, it's important to recognize their role in the cycle of life.
The rarest candlestick pattern is often considered the "Abandoned Baby." This pattern is a reversal indicator characterized by a gap followed by a Doji, which is a candle with a small body, and then another gap in the opposite direction.
What is the triple candlestick pattern called? ›
The evening star candlestick pattern is a triple candlestick pattern that consists of a long bullish candlestick, a bullish or bearish candlestick with a short body and a final bearish candlestick. Evening star candlestick patterns are considered bearish trend reversal indicators.
Is a gravestone doji bullish or bearish? ›
A gravestone doji is a bearish reversal candlestick pattern that is formed when the open, low, and closing prices are all near each other with a long upper shadow.
What does a dragonfly doji mean? ›
A Dragonfly Doji is a type of candlestick pattern that can signal a potential price reversal, either to the downside or upside, depending on past price action. It forms when the asset's high, open, and close prices are the same.
What is the white candlestick pattern? ›
What Is a White Candlestick? A white candlestick depicts a period where the security's price has closed at a higher level than where it had opened. It is a point on a security's candlestick chart representing a bullish period. On some charts, an up-candlestick may be depicted as either green or black.
What are the three candle bullish patterns? ›
Triple candlestick patterns can be bullish or bearish. Triple candlestick patterns such as the morning star, morning star doji, bullish abandoned baby, three white soldiers, three inside up, and three outside up signal bullish trend reversals.
What is the three-outside-up candlestick pattern? ›
The three outside-up is a bullish candlestick pattern that signifies reversals after a bearish trend. As the name suggests, there are three different candles in this pattern that are formed across sessions. When this pattern is formed, the market follows a bullish sentiment.
What is the pattern of three crows? ›
The three black crows candlestick pattern is considered a relatively reliable bearish reversal pattern. Consisting of three consecutive bearish candles at the end of a bullish trend, the three black crows signals a shift of control from the bulls to the bears.
