How to Trade the Three White Soldiers Candlestick Pattern

three white soldiers

The three white soldiers are candlestick chart patterns that occur over three trading sessions. They show a strong reversal from a bear market to a bull market. This pattern may be profitable to trade if it is formed properly. If the soldiers appear on your charts, you have found a strong price reversal. To trade this pattern, you should follow the steps below:

Three consecutive red candlesticks

The three white soldiers candlestick pattern is formed after a Doji (don’t-out-look-like-doll), which signals a possible reversal of trend. The first candle of this pattern is white in color, and the second candle opens and closes higher than the first candle. The third candle is red in color, and it closes below the first candle. These three candles together form a pattern called a “three white soldiers”.

In addition to these, you should also pay attention to the candlestick pattern’s shadows. The three soldiers pattern can signal a large change in market sentiment, as it suggests a bullish reversal. In other words, if three consecutive red candles occur within three days, it means that the bulls have held off the bears for long enough to make the top of the range. As a result, you should look for a price reversal signal and enter trades accordingly.

Three white soldiers Trend reversal

A successful trading strategy for the Three White Soldiers pattern is to buy after a rally. This pattern is formed when price moves higher and breaks three green candles. Once this pattern is broken, a trader is required to sell the stock at a higher price. A three white soldiers pattern is not the only way to trade the market. It may also represent a trend reversal. Traders should always confirm their signals with technical indicators.

However, this pattern does have its limitations. It must form near a key support level at the end of a downtrend. If it forms inside a consolidation, its reliability is compromised. The profit margins of trading this pattern are thin when trading a ranging market. The pattern will soon run into a key resistance level, making it unprofitable. If you do trade this pattern, you should use other technical indicators, such as the stochastic oscillator.


If you’ve ever traded the stock market, you’ve probably seen a three-white-soldier pattern. These long, green candles form at the bottom of a downtrend. This pattern offers the highest risk-to-reward ratio, and it usually signals a possible uptrend soon. Confirmation of three white soldiers will come when the candles are all about the same size and open above the previous candle’s high.

It is a bullish reversal pattern that shows the bears are losing control of the trend. To trade this pattern, each of the candles must be above the previous one. When all three candles are in the same direction, this pattern is the start of an uptrend. A bearish reversal will follow when the three-white-soldiers appear in a downtrend.

While it is a powerful signal of a bullish trend, the price must confirm that it is actually part of a bull run before you can trade. A three-white-soldier pattern can be triggered by a strong rally, or by a break of a key resistance level. While the three-white-soldiers pattern is a powerful one, it requires mental toughness. When three-white-soldiers appear, the market should be strongly bullish.

Short covering

The short covering for three white soldiers pattern is a useful entry and exit point during the short position. This pattern has a slight height shift but its major drawback is the mixed sentiment it can create in a market. It can also trap traders on the wrong side of the market. However, the short covering for three white soldiers pattern is a good investment strategy, especially if you don’t mind risking a few hundred dollars.

This candlestick pattern is a powerful tool to enter and exit a short trade. However, you must have total discipline when trading with this pattern, so you must be disciplined. There are also automatic screeners online that will identify trades for you. To be successful in this pattern, you must know how to spot it in real time and not just rely on a candlestick pattern.