The Three White Soldiers pattern is a bullish candlestick formation signaling a strong market reversal from bearish to bullish. It appears after a downtrend or consolidation, suggesting a sustained upward movement.

What The Pattern Looks Like:

1. First Candle:A long bullish (green) candle appearing after a downtrend, indicating a sharp rise in price.

2. Second Candle: Another bullish candle that opens within the first candle's body and closes higher.

3. Third Candle:Also bullish, opening within the second candle's body and closing higher, confirming the uptrend.

All three candles should have small or no lower wicks, showing the market closed near its highs.

Pattern Logic

End of Bear Dominance:Market shifts from bearish or neutral.

Strong Bullish Momentum:First candle shows strong buying interest.

Consistent Buying Pressure: Next two candles indicate continued control by bulls.

Change in Sentiment: The three candles together demonstrate a clear shift to bullish sentiment.

Potential for Further Gains: Traders often seek additional confirmation for the trend's strength.

In essence, the Three White Soldiers pattern is a reliable indicator of bullish reversals, but it should be used alongside other tools for confirmation.