Three White Soldiers Candlestick Pattern

What the Three White Soldiers pattern means

Three strong green closes in a row show buyers took firm, steady control with little selling pressure. It is one of the more reliable reversal patterns, but a very extended version can signal an overbought market that is due to pull back.

How the Three White Soldiers is traded

• →Enter on the pattern's completion or a shallow pullback, not after a large extended run.
• →Each candle should close near its high with small upper wicks for a clean signal.
• →Stop goes below the low of the first or second soldier.
• →Be cautious if the candles are unusually large, which can mean a short-term top.

Common mistakes

• ✕Chasing after the third candle when price is already extended.
• ✕Ignoring small bodies or long upper wicks that weaken the pattern.