# Three White Soldiers: A Bullish Trading Pattern Guide

## What Do Three White Soldiers Mean?

Three white soldiers is a bullish [c](https://www.investopedia.com/terms/c/candlestick.asp)andlestick 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](https://www.investopedia.com/terms/r/realbody.asp) and a close that exceeds the previous candle's high. These candlesticks should not have very long [shadows](https://www.investopedia.com/terms/s/shadow.asp) and ideally open within the real body of the preceding candle in the pattern.

### Key Takeaways

*   The three white soldiers candlestick pattern indicates a potential reversal of a downtrend and consists of three consecutive long-bodied candlesticks.  
    
*   This pattern is most effective when confirmed by other technical indicators such as the [relative strength index (RSI)](https://www.investopedia.com/terms/r/rsi.asp) and should be supported by strong trading volume.  
    
*   While three white soldiers can signal market bullishness, they can also appear during consolidation, requiring traders to be cautious of false signals.  
    
*   For increased reliability, traders often complement this pattern with additional technical analysis tools like moving averages and trendlines.  
    
*   The opposite pattern, three black crows, signals a potential reversal of an uptrend, indicating the bears are taking control.

## How the Three White Soldiers Pattern Signals Market Reversal

The three white soldiers candlestick pattern is typically observed as a reversal indicator, often appearing after a period of price decline. This chart pattern suggests a strong change in market sentiment in terms of the stock, commodity, or forex pair making up the price action on the chart.

When a bullish candle closes with small or [no shadows](https://www.investopedia.com/ask/answers/07/marubozo.asp), it suggests that the bulls have managed to keep the price at the top of the range for the session. Basically, the bulls take over the rally all session and closed near the high of the day for three consecutive sessions. In addition, the pattern may be preceded by other candlestick patterns suggestive of a reversal, such as a [doji](https://www.investopedia.com/terms/d/doji.asp) or a [hammer](https://www.investopedia.com/terms/h/hammer.asp).

Here is an example of three white soldiers appearing in a pricing chart for the VanEck Vectors Fallen Angel High Yield Bond exchange-traded fund (ETF).

![Image 1](https://www.investopedia.com/thmb/0L2UfSsMDv_lzphC7kUV5W9VXGQ=/1500x0/filters:no_upscale():max_bytes(150000):strip_icc()/dotdash_Final_ThreeWhite_Soldiers_Definition_2020-01-cedf748e8c644b90b96e588aa4364291.jpg)

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The ETF was in a strong bearish downtrend for several weeks until the three white soldiers pattern showed a sharp bullish reversal. The pattern may suggest that the rally will continue, but traders should also look at other relevant factors before making a decision. For example, the stock might hit a resistance area after the pattern forms, or the rise might occur on low volume, which isn’t a sign of strength.

## Trading Strategies for the Three White Soldiers Pattern

Because three white soldiers is a bullish pattern, traders use it as a potential entry or exit point. Traders who are short on the security look to exit and traders who are waiting to take a bullish position see the three white soldiers as an entry opportunity.

When trading the three white soldiers pattern, it's important to note that the strong moves higher could create temporary overbought conditions. The relative strength index (RSI), for example, may have moved above 70.0 levels. In some cases, there is a short period of consolidation following the three white soldiers pattern, but the short- and intermediate-term bias remains bullish. The significant move higher could also reach key [resistance levels](https://www.investopedia.com/terms/r/resistance.asp) where the stock could experience a period of consolidation before continuing to move higher.

## Comparing Three White Soldiers with Three Black Crows

The [three black crows](https://www.investopedia.com/terms/t/three_black_crows.asp) pattern is the opposite of the three white soldiers. Three black crows are three long-bodied candlesticks that open within the real body of the prior candle and close lower. Whereas three white soldiers catch the momentum shift from the bears to the bulls, three black crows show the bears taking control from the bulls. The same caveats about volume and additional confirmation apply to both patterns, though confirming volume is more important in the bullish pattern.

## Understanding the Limitations of the Three White Soldiers Pattern

Three white soldiers can also appear during periods of consolidation, which is an easy way to get trapped in a continuation of the existing trend rather than a reversal. It's important to look at the volume that supports the formation of the three white soldiers. Any pattern on low volume is suspect because it is the market action of the few rather than the many.

To combat the limitation of visual patterns, traders use the three white soldiers and [other such candlestick patterns](https://www.investopedia.com/terms/b/bullishhomingpigeon.asp) in conjunction with other technical indicators like [trendlines](https://www.investopedia.com/terms/t/trendline.asp), moving averages and [bands](https://www.investopedia.com/terms/b/bollingerbands.asp). For example, traders might check for upcoming resistance areas or examine volume levels during a [breakout](https://www.investopedia.com/terms/b/breakout.asp) to confirm high dollar volume. If the pattern occurred on low volume with near-term resistance, traders should until there is further confirmation of a breakout to initiate a long position.

## What Other Chart Patterns Are Similar to the Three White Soldiers?

Several other chart patterns bear similarities to the three white solders, each with its own nuances and predictive capabilities. Some of these include the three black crows, the bullish engulfing pattern, morning star, hammer and inverted hammer, the piercing line, the abandoned baby, tweezer bottoms and tops as well as the double bottom and double top.

## What Can Be Done to Improve the Reliability of the Three White Soldiers Chart Pattern?

Improving the reliability of the three white soldiers chart pattern involves a multi-faceted approach that incorporates additional technical indicators, volume analysis, and contextual market conditions.

## What Are the Best Assets to Trade with the Three White Soldiers Chart Pattern?

The three white soldiers chart pattern is a versatile technical indicator that could be applied across various asset classes. However, its effectiveness may vary depending on the asset's liquidity, volatility and market conditions. Some asset classes where this pattern is commonly used are stocks, forex, commodities, ETFs, futures and options.

## What Is the Best Timeframe to Use the Three White Solders Chart Pattern?

The effectiveness of the three white soldiers chart pattern can vary depending on the timeframe used for analysis. The best timeframe largely depends on the trader's style and risk tolerance. Generally, the three white solders pattern is often considered more reliable on longer timeframes such as the daily or weekly charts.

## What Indicators Can Be Used in Conjunction With the Three White Soldiers Chart Pattern?

Using the additional technical indicators alongside the three white soldiers chart pattern has the potential to enhance its reliability and provide a more comprehensive trading strategy. Some commonly used indicators that complement this pattern are the Relative Strength Index (RSI), moving averages, Bollinger Bands, Volume Oscillator, Moving Average Convergence Divergence (MACD), Stochastic Oscillators, Fibonacci Retracement Levels, the Average Directional Index (ADX), the Ichimoku Cloud and Pivot Points.

## Conclusion: Effectiveness of Using the Three White Soldiers Pattern

The three white soldiers candlestick pattern is a reliable indicator of a bullish reversal and is typically observed following a period of price decline. It consists of three consecutive long-bodied candlesticks that suggest a strong shift in market sentiment from bearish to bullish.

However, traders should use this pattern in conjunction with other technical indicators, such as the Relative Strength Index (RSI) and volume analysis, to validate its reliability. This pattern can be particularly effective on longer timeframes like daily or weekly charts, but traders must remain vigilant for signs of retracement or consolidation. Employing a multi-faceted approach with additional technical indicators can enhance decision-making and avoid false signals."

> **Article Sources**
>
> 1.  VanEck. "[VanEck Fallen Angel High Yield Bond ETF](https://www.vaneck.com/us/en/investments/angel-high-yield-bond-etf-angl/)."