Three White Soldiers Candlestick Pattern: Spot the Beginning of a Bullish Trend
If you’re looking to catch strong bullish moves early, then the Three White Soldiers candlestick pattern is one of the most reliable signals in technical analysis. This visually clear and powerful formation signals the end of a downtrend and the start of a fresh bullish rally.
In this blog, you’ll discover:
- What is the Three White Soldiers pattern
- How it forms and what it means
- How to trade it step-by-step
- Where to place stop-loss and take profits
- Real chart examples
- How to learn more with ISFM’s expert courses
What is the Three White Soldiers Pattern?
The Three White Soldiers is a bullish reversal pattern made up of three consecutive long green candles that open within the previous candle’s body and close progressively higher.
Key Features:
- Appears after a downtrend or consolidation
- Each candle opens within or slightly above the prior candle’s body
- Each candle closes near its high, showing strong buyer control
This pattern signals strength, conviction, and a shift in momentum from bears to bulls.
Psychology Behind the Pattern
The market has been in a downtrend or has recently bottomed out. Suddenly, buyers step in with increasing force over three consecutive sessions:
- First green candle: buyers emerge after bearish exhaustion
- Second green candle: bullish conviction increases
- Third green candle: buyers take full control, closing near session highs
How to Identify the Three White Soldiers Pattern
Here’s what to look for:
- Three large bullish candles in a row
- Each opens within or slightly above the previous candle’s body
- Each closes near its high, with minimal upper wicks
- Appears after a downtrend or consolidation
- Confirm with rising volume and support breakout
How to Trade the Three White Soldiers Pattern
Entry:
- Enter a buy position after the third candle closes, or
- Enter on a breakout of the third candle’s high with confirmation
Stop Loss:
- Place stop loss just below the low of the first candle in the pattern
Targets:
- Nearest resistance level
- Use Fibonacci extension or moving averages for dynamic targets
- Trail your stop-loss for bigger swing trades
Pros and Cons of the Pattern
Pros:
- Easy to recognize, especially for beginners
- Reliable signal of bullish reversal
- Ideal for swing trading and trend-following entries
Cons:
- May fail in low-volume markets or near resistance
- Needs confirmation—avoid trading it in overbought zones
- False signals possible during sideways markets
Learn to Trade Patterns Like This at ISFM
At ISFM – International School of Financial Market, we go beyond theory and teach real-time candlestick trading using:
- Market structure
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Conclusion
The Three White Soldiers candlestick pattern is a powerful, clear, and high-probability bullish reversal signal. When used with proper confirmation and trading discipline, it can set you up for timely entries into trending stocks.
