Three White Soldiers Chart Pattern: A Key Bullish Reversal Signal Explained

Uncover the intricacies of the Three White Soldiers candlestick pattern, a powerful bullish signal that indicates a potential market reversal, after a downtrend.

{“content”:"### Three White Soldiers: A Key Bullish Reversal Signal

The Three White Soldiers is a notable bullish candlestick pattern signaling the potential reversal of a current downtrend. This formation consists of three consecutive long-bodied candlesticks, each opening within or near the previous candle’s real body and closing above the previous candle’s high. A robust Three White Soldiers pattern typically features candles with minimal shadows, ideally opening within the real body of the prior candle.

Key Takeaways

  • Three White Soldiers serve as a reliable reversal pattern, especially when confirmed by other technical indicators like the Relative Strength Index (RSI).
  • Analyzing the size of the candles and the shadow’s length helps determine whether there is a risk of retracement.
  • The opposite pattern is known as the Three Black Crows, indicating a potential uptrend reversal.

Insights from Three White Soldiers

Whenever encountered, the Three White Soldiers pattern suggests a momentum shift, often appearing after a significant price decline. These three bullish candles signal that market sentiment may be shifting from bearish to bullish.

When a bullish candle closes with smaller or no shadows, it hints that the bulls managed to maintain control throughout the trading session. Essentially, formatting three consecutive candles with such characteristics spells out clear bullish dominance.

Image and sources lie with original photographer Sabrina Jiang

An example is from a pricing chart for the VanEck Vectors Fallen Angel High Yield Bond ETF, which transitioned from a prolonged bearish trend to a sharp bullish reversal identified by the Three White Soldiers pattern.

Trading Strategies Using Three White Soldiers

The bullish nature of Three White Soldiers makes it an ideal inflection point for trading. While traders holding short positions may choose to exit, those looking for a bullish entry can find promising opportunities here.

Remember, strong upward moves can create temporary overbought conditions, often indicated by an RSI surpassing 70. This may lead to short consolidation periods despite a broader bullish bias. Also, although the significant rally may face resistance, it could generally continue its upward pace post any minor corrections.

The Contrast with Three Black Crows

Opposite to Three White Soldiers, the Three Black Crows pattern consists of three declines each candlestick starts within the previous and closes below it. This bearish reversal pattern underscores the bears gaining control from the bulls, contrary to the bullish momentum seen in Three White Soldiers.

Pros and Cons of Using Three White Soldiers

Having Three White Soldiers might be attractive, but particular considerations must be recognized:

  • During consolidation, still existing trends may persist much longer, fooling observers into thinking a genuine reversal could bear repeated experiences.
  • Volume should substantiate the rise, heightened interest indicating integrity behind the move, better specter larger-scale investing movements assessing value substantiating trends.
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Related Terms: candlestick chart, bullish engulfing pattern, three black crows, technical indicators.


  1. VanEck. “VanEck Fallen Angel High Yield Bond ETF”.

Get ready to put your knowledge to the test with this intriguing quiz!

--- primaryColor: 'rgb(121, 82, 179)' secondaryColor: '#DDDDDD' textColor: black shuffle_questions: true --- ## What is the Three White Soldiers candlestick pattern indicative of? - [ ] A bearish trend reversal - [x] A bullish trend reversal - [ ] Market indecision - [ ] Continuation of a downtrend ## How many consecutive candlesticks characterize the Three White Soldiers pattern? - [ ] One - [ ] Two - [x] Three - [ ] Four ## What colors are the candlesticks involved in the Three White Soldiers pattern? - [ ] Black - [ ] Red - [x] White (or green in modern charts) - [ ] Yellow ## Generally, what does each candle in the Three White Soldiers pattern represent? - [ ] Increasing bear power - [ ] Decreasing bull power - [x] Increasing bull power - [ ] Market consolidation ## In which market condition does the Three White Soldiers pattern most commonly appear? - [ ] Bull market - [ ] Horizontal market - [x] Bear market or after a downtrend - [ ] Neutral market ## What feature characterizes the three candlesticks in the Three White Soldiers pattern? - [ ] Large upper wicks - [x] Opening within the previous candle’s body and closing near its high - [ ] Small bodies and long shadows - [ ] Spinning top bodies ## Why might a trader consider the Three White Soldiers pattern significant? - [x] It suggests a strong shift from bearish to bullish sentiment - [ ] It indicates indecision in the market - [ ] It forecasts a market peak - [ ] It signals the continuation of a downtrend ## Which of the following is NOT a possible confirmation needed after observing the Three White Soldiers pattern? - [ ] Volume increase - [ ] Continuation of uptrend - [ ] Higher subsequent closing prices - [x] Sudden price drop ## Which aspect of the Three White Soldiers pattern should traders be cautious about? - [x] The possibility of an overextended market - [ ] Lack of market momentum - [ ] Decreasing trading volume - [ ] Emergence following an uptrend ## To validate the Three White Soldiers pattern, what additional indicators might traders use? - [x] Volume indicators - [ ] Fibonacci retracement levels - [ ] Stochastic oscillator - [ ] All of the above