During the last bull market, I successfully accumulated 42 million in wealth. Next, let me share my unique journey of striking gold in the digital currency field.
As a man born in the 90s, I began my career in Shenzhen after graduating in 2002 and officially entered the cryptocurrency space in early 2016. Now, in Guangzhou, I own two properties and two vehicles, and a monthly expense of 100,000 is comfortable for me, while most of my assets steadily grow in exchanges.
Trading, a seemingly glamorous job, is actually filled with endless monotony. After years of experience, I have long passed the stage of being emotionally stirred by market fluctuations; instead, I have gained a sense of calm and composure.
Talking about my daily life:
Staying up late? This is just our daily rhythm, not a burden. Although the outside world often equates us to 'night owls', I always uphold my beautiful bottom line because, after all, image is also a part of strength.
Casual? Perhaps the outside world mistakenly thinks we are immersed in a world of luxury, but that's not the case. More often than not, I am simply coping with life; even when I occasionally travel, it is hard to relax completely. Anxiety is ever-present, reminding me not to slack off because I carry the trust and expectations of countless people. This trust is both a motivation and a heavy responsibility. My life is not about socializing, but about keeping a close eye on market dynamics, analyzing information, and constantly reflecting and summarizing.
Pressure? From the initial coping to the current endurance, I have learned to dance with pressure. Why always keep an eye on the market? Because contract trading is all about timing, every suitable entry point is crucial. At the same time, I also need to continuously respond to questions from various parties, even though this takes up a lot of my time, but I enjoy it.
My trading philosophy, in short:
1. Abandon subjective assumptions and closely follow the pulse of market sentiment.
2. Stop-loss position, which is both the market's judgment and my tolerance limit.
3. Stick to your views, and be brave enough to bear the consequences if you are wrong.
4. Trading is not a contest of speed and passion, but a game of endurance and wisdom.
I hope every friend who reads this article can win in the battle against their own humanity because the essence of trading is a profound dialogue with the self. Looking back, what I am most proud of is that I have always maintained clarity and resilience.
The market specifically treats:
▫️ When greedy → it lures you to over-leverage and get buried.
▫️ When fearful → a sharp drop forces you to cut losses just as it rebounds.
▫️ When blindly following → it makes you chase high and become a big loss.
The cryptocurrency market has never been a fair game; information asymmetry is the norm.
Ordinary people often get their information from the internet, but by the time you receive the information, it may have gone through several hands or even dozens. In the internet age, being behind on news equates to being hit, meaning you will become someone else's loss.
Those who survive have an exceptional ability to filter information. They do not blindly trust or follow trends, but instead establish their judgment system through in-depth research of blockchain technology, analyzing project fundamentals, and tracking capital flows.
Sometimes you get lucky, and you might catch a 'hundred times coin', but that is not your own ability; only by mastering excellent information filtering and verification skills can you survive in the market long-term.
The win rate is as high as 94%! This is how you should trade the 'Three White Soldiers' candlestick pattern.
In Japanese candlestick patterns, the Three White Soldiers (Three White Soldiers Pattern) is a bullish reversal candlestick pattern that usually appears at the bottom after a price decline, indicating that the price may soon reverse.
Since the Three White Soldiers pattern is a bullish reversal pattern, we hope to see a price drop before this pattern appears, so it is also a common signal for the end of the trend.
How to identify the Three White Soldiers pattern?
The Three White Soldiers pattern is a three-candlestick pattern consisting of three consecutive bullish candlesticks, located at the bottom of a downtrend. It is the mirror version of the 'Three Black Crows' pattern.
The method for identifying the 'Three White Soldiers' pattern on the chart is as follows:
◎ Three consecutive bullish candlesticks.
◎ The body is relatively large.
◎ The shadows should be small or nonexistent.
This pattern looks like this on the chart:
Therefore, to identify the Three White Soldiers candlestick pattern on the chart, you need to find three consecutive bullish candlesticks that appear at the bottom of a downtrend.
Moreover, each candlestick must have a relatively long body, and the opening price must be higher than the closing price of the previous candlestick, ultimately forming a 'V' shape.
Variants of the Three White Soldiers candlestick pattern.
Of course, the Three White Soldiers candlestick pattern may vary on daily trading charts.
You may see a significant gap between the closing price of one candlestick and the opening price of the next, causing them to start from within each other.
You will also often see the candlesticks gradually become smaller during the formation process.
It may look like this on the chart:
How to trade the Three White Soldiers candlestick pattern.
To trade the Three White Soldiers candlestick pattern, it is not enough to simply find the same shaped pattern on the chart.
What makes the pattern effective is not just the shape, but also the position where it appears. This means that the same shape appearing in different positions may imply different meanings.
When trading the Three White Soldiers, we first want to see the price decline, forming a bearish trend.
The Three White Soldiers pattern that appears after such a bearish trend could be an upward reversal signal.
It looks like this:
So when should we enter a trade based on the Three White Soldiers pattern?
It's simple; when the high of the last candlestick is broken, you can enter the trade.
This is the trigger for adopting a conservative bullish strategy, as shown below:
For stop-loss, we can set it below the first candlestick of the Three White Soldiers pattern.
Additionally, to improve accuracy, we want to trade the Three White Soldiers candlestick pattern by combining it with other technical analysis or indicators.
Trading strategies for the Three White Soldiers candlestick pattern.
Strategy 1: Use trend reversal indicators - RSI and Stochastic Oscillator.
The two most effective indicators for confirming trend reversals are the Relative Strength Index (RSI) and the Stochastic Oscillator. Essentially, these technical analysis tools indicate overbought and oversold areas, thus helping you identify potential reversal zones.
As seen in the following AUD/USD 1-hour chart, when the Three White Soldiers pattern appears (RSI below 30, Stochastic Oscillator below 20), both RSI and Stochastic Oscillator are below the oversold area. This validates the candlestick pattern and provides additional signals for the upcoming trend reversal.
In the above example, the trader will establish a long position after the completion of the third bullish candlestick, with a stop-loss set at the lowest level of the first candlestick or below. The take-profit should be set at the highest level of the previous bearish trend candlestick.
Additionally, you can use RSI divergence to trade the Three White Soldiers pattern. This is somewhat different from other trading strategies.
To find a bullish RSI divergence, we first want to see the price in a downward trend, forming lower lows and lower highs.
Operating steps:
◎ Identify the downward trend.
◎ Mark the lows formed after each decline.
◎ Compare the price lows with the RSI indicator.
◎ When you see RSI forming higher lows while the price forms lower lows, you have found the divergence.
◎ Wait for the Three White Soldiers pattern to appear at a lower price low, aligning with a higher low in RSI.
◎ Go long when the price breaks above the high of the last candlestick of the Three White Soldiers.
◎ Set stop-loss and take-profit targets, anticipating that the price will rise.
Strategy 2: Trade the Three White Soldiers using Fibonacci.
In addition to using trend reversal indicators, you can also use Fibonacci retracement levels to detect potential support or resistance areas and determine whether a trend reversal may occur.
Fibonacci shows the retracement levels at which prices are likely to reverse. Depending on the strength of the trend, the combination of different levels with the Three White Soldiers pattern may vary in effectiveness.
Operating steps:
◎ The market is in an upward trend.
◎ Then wait for the decline.
◎ Use Fibonacci tools to draw levels from the low to the high of this wave.
◎ When the price reaches the Fibonacci level and the Three White Soldiers pattern appears, this is a signal to wait.
◎ Go long when the price breaks above the high of the third candlestick of the Three White Soldiers.
◎ Set stop-loss and take-profit targets, anticipating that the price will rise.
To draw Fibonacci retracement levels, you need to find a completed trend and drag it from the lowest point of the previous trend to the highest point (as shown in the following image).
Then, once you have drawn the Fibonacci retracement levels, you can zoom in and look for entry levels. Additionally, you can use Fibonacci to find stop-loss positions and take-profit targets.
In the above example, the entry point will be the closing price of the third candlestick (because the market trading price is above the 78.6% Fibonacci level).
Then, the stop-loss can be set at the lowest level of the first candlestick or the 0.0% Fibonacci level (i.e., the lowest level of the previous price range). Finally, the take-profit should be set at the highest level of the previous trend or one of the Fibonacci levels below.
Strategy 3: Trade the Three White Soldiers using moving averages.
Moving averages are excellent indicators for trend trading. When the price is in an upward trend, the price retraces towards the moving average.
Operating steps:
◎ Find an upward trend, where the price jumps above the moving average.
◎ Wait for the price to pull back to the moving average.
◎ Check if the Three White Soldiers pattern appears on the moving average.
◎ Go long when the price breaks above the high of the last candlestick of the Three White Soldiers.
◎ Set stop-loss and take-profit targets, anticipating that the price will rise again.
What is the success rate of the Three White Soldiers pattern?
According to the Encyclopedia of Candlestick Charts written by internationally renowned trader Thomas N. Bulkowski, the success rate of the Three White Soldiers candlestick pattern reaches 84%.
Advantages and disadvantages of the Three White Soldiers candlestick pattern.
Here are the most common advantages and disadvantages of trading the Three White Soldiers pattern:
Summary
The Three White Soldiers is a three-candlestick pattern.
To ensure effectiveness, it must occur after a price drop.
This is a bullish reversal pattern, indicating that it signals a potential upward reversal of the price.
To improve accuracy, you can use RSI, moving averages, and other trading indicators to trade the Three White Soldiers.
The win rate of the Three White Soldiers candlestick pattern is 84%.
It's worth noting that no trading strategy is foolproof; sometimes, while using a strategy, you may encounter significant market shifts, and the market begins to develop with strong momentum.
To ensure you can bear appropriate risks, please appropriately lock in profits when the trend is in your favor.
Remember to always test these strategies or indicators in simulated trading.
If you want to find opportunities to dig deep into trends and accurately grasp trading timing, welcome to Wu Ge's 'main business'!