3 white soldiers is yet another bullish trend reversal chart pattern similar to 3 black crows but with different interpretations
3 white soldiers candlestick pattern is found to be strong and powerful signal for identifying bullish trend reversal. This, when found after a strong proper downtrend along with a confirmation, can bring great results.
Let’s discuss its appearance, behavior, condition when it provides strong signals and its market interpretation.
3 white soldiers candlestick chart patterns forms with three bullish candlesticks in an order with each candlestick having its own significance.
- The first candle is bullish. After a downtrend
- The second bullish candle is formed such that the close price is near its high with no or very small shadow.
- The third bullish candlestick should be longer, and close is very near to high with no or very small shadow.
Check out the other Bullish trend signals
Condition for use
It is very strong bullish trend reversal signal and can efficiently be utilized when found at the bottom a trend where the trend is consolidating.
If such pattern forms after a pull back then it won’t be worth using as the strength of the signal is not sound as it is not formed at the bottom of a trend.
So you need to analyze a proper downtrend which the buyers break forming 3 white soldiers.
Know how technical indicators work !!
Market interpretations of 3 White soldiers
The formation of 3 white soldiers candlestick pattern after a downtrend signifies bullish trend reversal signal This is confirmed by the second candlestick formation that describes that the sellers are active, optimistic and willing to buy from sellers at any price resulting in no or very small shadow near the close price.
Sellers are now weak and buyers and taken the charge. With the formation of third bullish candlestick which is longer and stronger bullish in nature confirms the pattern
It has its significance when found near downtrend consolidation.
You can check it’s example here
Key elements to remember
- 3 bearish candlestick pattern giving strong bullish trend reversal signal
- Only helpful when forms after a strong proper downtrend otherwise not considered
- Bullish candles with no or very small shadow are only considered for second and third candlestick for confirmation of the pattern
- Need to get confirmed with technical indicators before you make any move.
Check out Stochastic Oscillator for trend analysis.
With this, I guess you can now establish and identify bullish trend reversal with 3 white soldiers candlestick pattern. Remember the key elements of this pattern and keep yourself stick to the conditions where it needs to be traded. don’t force your eyes to form a pattern where you wish to trade