1- Three White Soldiers Pattern - Bullish Pattern
The Three White Soldiers pattern consists of three long candles with long bodies that follow a downward trend, indicating a long-term reversal to the upside.
To be a valid 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 must be the same size as or larger than the body of the second candle, and the closing price of the third candle must be at or near the highest price with a small or no wick.
Technical traders use the Three White Soldiers pattern as one of the clearest patterns indicating the end of bearish markets.
2 Three Black Crows Pattern - Bearish Pattern
The opposite of the above-mentioned Three White Soldiers pattern. The Three Black Crows pattern consists of three long bearish candles that follow an upward trend, indicating a long-term reversal to the downside.
To be a valid pattern:
The body of the second candle must be longer than the first, and it must close near its bottom with a small or no wick.
The body of the third candle must be the same size as or larger than the second candle, and the closing price of the third candle must be at or near the lowest price with a small or no wick.
A technical trader may use the Three Black Crows pattern as an opportunity to open a sell position with the goal of profiting from the subsequent downward trend.
3 Bullish or Bearish Three Candle Pattern
Using the Three Bullish or Bearish Patterns to predict the continuation of the current trend, whether it is bearish or bullish.
The bearish pattern is called the 'Three Rising Methods' pattern. The bearish pattern consists of a long red candle, followed by three small green candles, and another red candle - all green candles 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 known as the 'Three Black Crows' pattern. It consists of three short red candles that fall within the range of two long green candles. The pattern shows traders that despite some selling pressure, buyers maintain control of the market.