- Each candlestick should open higher than the previous day's open.
- The closing price of each candlestick should be near its high, indicating bullish momentum.
- The pattern typically occurs in a downtrend and signals a potential reversal of the trend.
- Traders often look for this pattern as a signal to enter long positions, but other analysis should also be considered.
- Stop loss orders can be placed below the low of the last candlestick in the pattern to manage risk.
- The Three White Soldiers pattern is more reliable when it occurs after a period of consolidation or when other technical indicators also suggest a bullish reversal.
Three White Soldiers
"Three White Soldiers" is a bullish candlestick pattern that typically occurs in a downtrend and indicates a potential reversal of the trend.
It consists of three consecutive long-bodied candlesticks with small or no wicks, each opening higher than the previous day's open and closing near its high.
The pattern suggests that buyers have taken control of the market and are willing to push the price higher. Traders often look for this pattern as a signal to enter long positions.
