3 Soldiers Candlesticks - Traders Log (2024)

FAQs

What is the three soldiers candlestick pattern? ›

Three white soldiers is a bullish candlestick pattern that is used to predict the reversal of the current downtrend in a pricing chart. The pattern consists of three consecutive long-bodied candlesticks that open within the previous candle's real body and a close that exceeds the previous candle's high.

It consists of three successive candlesticks – the first is long and bearish and is followed by a smaller bullish bar that is completely engulfed by the first one. The third candle is bullish and closes above the second candle's high, suggesting a potential shift from a downtrend to an uptrend.

Three white soldiers are one of the rarest candlestick patterns that appear almost after 3000 candles in the chart. However, the success rate is around 80% which means every time this pattern is displayed, the market has shown a good reversal and brings an opportunity to earn profit in a long position.

The Three Black Crows candlestick pattern is just the opposite of the Three White Soldiers. It is formed when three bearish candles follow a strong UPTREND, indicating that a reversal is in the works. The second candle's body should be bigger than the first candle and should close at or very near its low.

The three white soldiers' candlestick pattern is a potential bullish reversal signal, indicating a strong shift in market sentiments. It suggests that the buyers have overpowered the sellers and the stock could witness a steep price surge shortly.

This requires a good understanding of the market and relevant information that can help them make the right decisions. In the stock market, the price of a share is determined by its demand and supply, among other factors. Tools such as candlestick chart patterns offer great help to traders.

Tick charts are one of the best reference sources for intraday trading. When the trading activity is high, the bar is formed every minute. In a high volume period, a tick chart offers deep insights in contrast to any other chart.

A candlestick pattern strategy will see a trader take note of what the individual candlesticks are doing. They will then make decisions about whether the candlesticks are forming particular patterns which could indicate a certain price behaviour, such as a market reversal.

The Three Soldiers Candlestick Pattern is primarily used to signal the reversal of a downtrend. This means traders can consider entering a long position or closing a short one when this pattern emerges. Here are some guidelines: Confirmation is key: Wait for the third candlestick to close and confirm the pattern.

How do you identify the three white soldiers pattern? ›

To identify the three white soldiers pattern, look for three consecutive green or white candlesticks. Each must open and close progressively higher than the first. The candlesticks should have big bodies and very small (or no) wicks. As mentioned, you are likely to see the pattern at the bottom of a downtrend.

The rarest candlestick pattern is often considered the "Abandoned Baby." This pattern is a reversal indicator characterized by a gap followed by a Doji, which is a candle with a small body, and then another gap in the opposite direction.

The triple top is a type of chart pattern used in technical analysis to predict the reversal in the movement of an asset's price. Consisting of three peaks, a triple top signals that the asset may no longer be rallying, and that lower prices may be on the way.

A black or filled candlestick means the closing price for the period was less than the opening price; hence, it is bearish and indicates selling pressure. Meanwhile, a white or hollow candlestick means that the closing price was greater than the opening price. This is bullish and shows buying pressure.

Three white soldiers are simply a visual pattern indicating the reversal of a downtrend whereas three black crows indicate the reversal of an uptrend. The same caveats apply to both patterns regarding volume and confirmation from other indicators.

The sculpture's 3 soldiers represent the diversity of the US military by including a Caucasian, African American, and Latino American whose service branch is intentionally ambiguous. Together, they face the Wall of the fallen.