The three white soldiers candlestick pattern consists of three long candles with long bodies following a downward trend, indicating a long-term upward reversal.
To be a correct pattern:
The body of the second candle must be longer than the body of the first candle, and its closing price should be near its peak with a small or no upper wick.
The body of the third candle should be the same size as or larger than the body of the second candle, and the closing price of the third candle should be at or near the highest price with a small wick or no wick.
Technical traders use the three white soldiers candlestick pattern as one of the clearest patterns indicating the end of bearish markets.
2 Three Black Crows Candlestick Pattern - Bearish Pattern
The opposite of the aforementioned three white soldiers candlestick pattern. This three black crows candlestick pattern consists of three long bearish candles following a bullish trend, indicating a long-term reversal downward.
To be a correct pattern:
The body of the second candle must be longer than the first and should close near its bottom with a small or no wick.
The body of the third candle should be the same size as or larger than the second candle, and the closing price of the third candle should be at or near the lowest price with a small wick or no wick.
The technical trader may use the three black crows candlestick pattern as an opportunity to open a short position aiming to profit from the next downward trend.
3 Triple Rising or Falling Candlestick Patterns
Triple rising or falling patterns are used to predict the continuation of the current trend, whether the trend is bearish or bullish.
The bearish pattern is called the "three rising candles pattern." The bearish pattern consists of a long red candle followed by three small green candles, and another red body - all the green candles are contained within the range of the bearish bodies. It shows traders that the bulls do not have enough strength to reverse the trend.
The opposite is true for the bullish pattern called the "three falling candles pattern." It consists of three short red candles that lie within the range of two long green candles. The pattern shows traders that despite some selling pressure, buyers are maintaining control of the market.
