Three White Soldiers |
Characteristic of Candlesticks: Reversal
Relevance of Candlesticks: Bullish
Prior Trend of Candlesticks: Bearish
Reliability of Candlesticks : 4th Grade
Confirmation of Candlesticks: Rare
Candlestick Patterns Key Reference |
DESCRIPTION
Three White Soldiers pattern is a confirmed reversal pattern which indicate a strong reversal in the market.
The opening price of each candlesticks is slightly lower than previous close rallying then to a short-term high.
PATTERN RECOGNITION
1. The Three White Soldiers pattern is identified by a downtrend.
2. We will see three consecutive long bullish candlesticks.
3. Each candlestick end with a higher closes.
4. The opening of each candlestick is within the body of previous candlestick.
5. Each candlestick closes near or higher than previous candlestick high.
EXPLAINATION
The Three White Soldiers pattern appear when the market stayed at a low price for too long.
The market is still falling down but it is approaching to the bottom or already at the bottom.
Then we will see the market attempt to push the price upward as shown by the long bullish candlestick.
The strong uptrend continued shown by the next two bullish candlesticks
with higher closes.
The bears are now forced to close their sell position.
The 4th grade reversal patterns are rare reversal patterns that may require confirmation in the next session.
POINT TO NOTE
For Three White Soldiers pattern, the opening price can be within previous candlestick's body.
However it is better to see the price open above the midpoint of the previous candlestick's body.
CANDLESTICK PATTERNS KEY REFERENCE
Irrespective of Color (Can be bullish or bearish) |
Uptrend |
Consolidation |
Downtrend |
ANTICIPATED DIRECTION OF TREND
Lighter Arrow = Lower Probability
Solid Arrow = Higher Probability
More Likely to go sideway, Less likely to rally
|
More likely to rally, Less likely to go sideways
|
More likely to go sideway, Less likely to fall
|
More likely to fall, Less likely to go sideways |
