The Three White Soldiers is a pattern that consists of three consecutive bullish candles with long bodies and short upper shadows. The “white” in the name refers to the fact that all three candles are bullish, or “white.” These three consecutive white bodies all have a higher close. This pattern suggests that the bulls are gaining strength and the price is likely to continue rising.
Three White Soldiers is frequently seen following a period of market decrease and is generally used as a reversal indicator. When it comes to the commodity and stock that is the subject of the price action on the chart, this pattern indicates a significant shift in market sentiment.
If the bullish candle ends with little to no shadows, the bulls may have been successful in holding the price at the high point of the range throughout the session. In essence, the bulls controlled the rally for the entire session and ended three straight sessions close to the day’s high. Furthermore, other candlestick patterns that point to a reversal, like a hammer or Doji, can occur before the pattern.
How to identify the Three White Soldiers
To identify Three White Soldiers, you have to note the following;
- The candle should have a small (or no) upper wick or shadows,
- Every one of those candles needs to open wider than it did the day before. It should open somewhere in the middle of the day’s pricing range,
- There should be three long, bullish candlesticks in a row, either green or white,
- Every candle needs to gradually open higher to create yet another short-term high.
