What is the Three White Soldiers Pattern?
Quick Answer: Three White Soldiers is a bullish candlestick formation with three strong green candles that close progressively higher, hinting at trend reversal or continuation.
Understanding the Three White Soldiers Pattern
Three White Soldiers features three strong bullish candles closing near their highs, usually after a downtrend. It indicates sustained buying pressure.
Three White Soldiers
Found at bottom of downtrend - Strong bullish reversal
Key Characteristics:
- Three consecutive bullish candles
- Each opens within previous candle body
- Each closes progressively higher
- Little to no wicks (strong buying pressure)
- All three candles roughly similar in size
Signal Strength:
Very strong bullish reversal signal - sustained buying pressure over three sessions shows conviction
What This Pattern Shows:
Three consecutive days of strong buying where bulls maintain control throughout each session. Each candle opens within the previous body but closes higher, showing consistent and building bullish momentum. The minimal wicks indicate buyers dominated from open to close without sellers able to mount any significant resistance. This persistent buying over three sessions signals strong conviction that the downtrend has ended and a new uptrend is beginning.
Trading Considerations:
- • Best after extended downtrend at support
- • Confirm with increasing volume on the three candles
- • Entry typically on break of third candle high
- • Stronger when candles have small/no wicks
- • Beware of exhaustion if wicks start appearing on third candle
Validating the Signal
Ensure each candle opens within the prior body, showing continuity. Increased volume and breakouts above nearby resistance levels strengthen the pattern.
Strategy Idea
Use the pattern to enter trend reversals, targeting prior swing highs. Tighten stops below the second candle's low to manage risk.
Beware of Exhaustion
Three White Soldiers after an extended rally may signal blow-off rather than fresh trend. Cross-check with volume and momentum to avoid chasing overheated moves.
Overextension Risk
If the pattern forms into major resistance, consider scaling out or waiting for a pullback before adding exposure.
Confirmation and Context
- Look for rising tick volume and closes near the highs.
- Best at the end of downtrends or after basing; avoid late-stage rallies.
- Align with higher‑timeframe support breaks turning to support.
Trade Plan
Enter after the third close or on the first pullback; stop below the second candle’s low; initial target at nearby resistance and a runner toward prior swing highs. Manage risk by sizing for a full pattern invalidation.
Practical Playbook
- Define context on higher timeframes, then execute on intraday charts.
- Wait for confirmation (acceptance, momentum, or confluence) before entry.
- Size positions conservatively and place stops at clear invalidation levels.
- Adapt to session dynamics; conditions shift between Asia, London, and New York.
Common Pitfalls
- Forcing trades without alignment across timeframe, structure, and catalyst.
- Ignoring spreads/slippage during news or thin liquidity.
- Moving stops or adding to losers instead of honoring the plan.
Illustrative Example
Build a simple playbook: identify bias, mark key zones/levels, define triggers and invalidation, and pre‑set targets for 2–3R. Journal results by session and setup to refine rules. Over time, consistency—not prediction—drives outcomes.
Practical Playbook
- Define context on higher timeframes, then execute on intraday charts.
- Wait for confirmation (acceptance, momentum, or confluence) before entry.
- Size positions conservatively and place stops at clear invalidation levels.
- Adapt to session dynamics; conditions shift between Asia, London, and New York.
Common Pitfalls
- Forcing trades without alignment across timeframe, structure, and catalyst.
- Ignoring spreads/slippage during news or thin liquidity.
- Moving stops or adding to losers instead of honoring the plan.
Illustrative Example
Build a simple playbook: identify bias, mark key zones/levels, define triggers and invalidation, and pre‑set targets for 2–3R. Journal results by session and setup to refine rules. Over time, consistency—not prediction—drives outcomes.
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