Three White Soldiers

The Three White Soldiers is a bullish candlestick pattern used in technical analysis. It's seen as a signal of a strong reversal in a downtrend.

The bearish version of this pattern is the Three Black Crows pattern.

Here's a breakdown of the Three White Soldiers pattern:

  1. This pattern consists of three consecutive long-bodied candlesticks that have opened within the real body of the previous candle and closed higher than the previous candle. In other words, each day opens slightly lower than the previous day's close, but then the price reverses into an uptrend and ends near the day's high.

  2. The color of the candles is white or green, indicating that the closing price is higher than the opening price.

  3. The pattern typically appears after a significant downtrend, signaling that the downtrend could be ending and a new uptrend might be beginning.

  4. Each of the three "soldiers" should be a significant bullish candlestick, not just a small upward move. The longer each candle, the more bullish the pattern.

As with all candlestick patterns, the Three White Soldiers should be used in conjunction with other indicators or forms of technical analysis for confirmation. Traders often look for increasing volume during the three-day period as further confirmation of a reversal.

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