1. Three White Soldiers – Three White Soldiers
How to identify the pattern:
Note: There should be three consecutive white candles, where each candle opens within the previous one and closes above it. This indicates a continuous increase in buying power.
Supporting indicators: The Relative Strength Index (RSI) may be in a low area before the pattern forms, indicating that the market was in a state of oversold.
Practical example:
Market: Suppose you are watching a stock in the market that has been in a long downtrend.
Pattern appearance: Three consecutive white candles began to appear, with increasing volume in each candle, indicating that buyers are starting to take control of the market.
Entry: After confirming the third candle (which closes above the previous one), you can enter the trade. You may also want to use an indicator like the Moving Average (MA) to confirm that the trend has indeed reversed.
