An Introduction to Three White Soldiers Pattern

Sometimes the crypto market can remain bullish for a longer duration, and whenever you see three bullish candlesticks color in either white or green, you should know that it is a formation of a strong bullish signal known as the "three white soldiers".

If you are using the red and green candlestick chart, the green color is for the bullish candle, whereas if you are a white and black color candlestick chart, it is the white color that is the bullish candle. Well in today's post, we will be discussing the three white soldiers.

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The Three White Soldiers

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The three green candlesticks indicated on the above chart are known as the three white soldiers, which represent a steady increase in the price of an asset due to high market demand following a downtrend move. In the financial markets, when buying pressure is higher the selling pressure will become weak, and bullish candlesticks will begin coming (rising). Anytime you see a bullish pattern like this, you should know that a reversal of price movement has just occurred.

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At this point, you can open a long position and make profits from the bullish trend when you have seen these three white soldiers' candlesticks. Although, you have to be cautious about your risk tolerance. Notes we also have the "three black crows" which is the opposite of the three white soldiers. The three black crows are represented by three red or black candlesticks that are formed at the top of an uptrend. It usually happens when selling pressure is more than buying pressure.

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Identifying The Three White Soldiers

It is very easy to identify the three white soldiers, as all you need to look out for is where three bullish candlesticks begin and each of the candlestick must have both open and close higher than the first candlestick. I.e the second candle should be higher than the first, and the third be the most higher.

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Secondly, the candlesticks should have a small wick or no wick, and big bodies and you must see the three white soldiers at of bottom of a downtrend moving up as shown in the chart above. Finally, three bullish and long (green or white) color candlesticks must be seen in a row.

How to Spot a Trade Using Three White Soldiers

It is very easy to spot a trade using the three white soldiers' trading pattern. The first thing that comes to a trader's mind when trying to spot a trade is a signal, in this case, using an indicator such as the relative strength index (RSI) can help you to spot a trade as it is best indicator when it comes to identifying price trend of knowing the level of overbought and oversold.

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RSI is good at predicting the future price trends of an asset when you see the three white soldiers are at the bottom of a downtrend market, you can use the RSI to know if there would be a trend reversal, which if truly confirmed, then you can buy the asset (open a long position) for the asset.

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Disclaimer

_{We have so far learned about what the three white soldiers' candlesticks mean on a chart which simply means a strong bullish trend due to high buying pressure and as well the opposite of the three white soldiers. Note, that this post is not investment advice, but serves as educational content.}

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