📈 Understanding the “Three White Soldiers” Pattern
What is it?
The Three White Soldiers pattern is a strong bullish reversal signal that appears after a downtrend or period of market indecision. It shows a gradual but persistent takeover by buyers.
How it forms:
Three consecutive long-bodied bullish candles (usually green).
Each candle opens within the previous candle’s body.
Each closes near its high, showing minimal selling pressure.
Why it matters:
This formation signals that bulls are in control and momentum is shifting upward. It often marks the start of a sustained rally.
Trading tips:
1. Best after downtrend – Stronger signal when following prolonged bearish movement.
2. Confirm with volume – Rising volume strengthens the validity.
3. Avoid overbought traps – Check RSI or Stochastic to avoid buying at an extreme.
4. Entry point – After confirmation candle or minor retracement.
In short:
The “Three White Soldiers” is a rallying cry for bulls, suggesting consistent buying pressure and a high chance of continued price increase.