The Three White Soldiers Candlestick Pattern
Introduction
The Three White Soldiers candlestick pattern is composed of three bullish candlesticks and occurs after a downtrend. It is used by traders to identify the bottom of a downtrend and a reversal into a uptrend.
In this article you will learn:
- What is a Three White Soldiers candlestick pattern
- How to identify and interpret a Three White Soldiers candlestick pattern
- Trading techniques after confirming a Three White Soldiers candlestick pattern
Our Latest Three White Soldiers Stock Alert
What is a Three White Soldiers candlestick pattern?
The Three White Soldiers is a candlestick pattern that is composed of a three bullish candlesticks, as the title suggests. It occurs during a downtrend, and may indicate the bottom of the downtrend. Because each candlestick closes higher than the previous trading session, in addition to closing higher that day, it indicates that buyers have taken control of the stock.
How to Identify a Three White Soldiers Candlestick Pattern
The Three White Soldiers candlestick patterns consists of three bullish candlesticks, with each candlestick closing higher than the previous trading session. Each candlestick must also close higher than the open, and should ideally open near the middle of the body of the previous trading period. Because the Three White Soldiers candlestick pattern occurs in a downtrend, our suggestion is to look at the previous 3 trading periods to verify the downtrend exists.
Trading Techniques for the Three White Soldiers Candlestick Pattern
It is recommended to wait one trading day to confirm the Three White Soldiers candlestick pattern. If the following day closes higher, this could mean a reversal in the stock and could indicate a potential bullish entry point. However, if the following day closes lower and is bearish then it may indicate that the pattern has failed and one should use caution when attempting to short the stock.
