What are the Three White Soldiers and how do they work?
It is the reverse pattern of the three black crows. It is a bullish reversal pattern and it should appear after a downtrend.
The three white soldiers is a pattern made up of 3 large-bodied green candles, where the close of each candle is higher than the close of the previous candle. The pattern consists of three long candlesticks that trend upward like a staircase.
This pattern is a bullish reversal signal, and the top of it can be used as support. It’s rare to see it, so when you find it especially in higher timeframes and with good volume, trade it with confidence.
How to trade the three white soldiers pattern?
- Wait for confirmation until the last candle forms
- Confirm with other indicators such as MACD or RSI
- Use stop loss at support