Elearnmarkets - Financial Market Learning
  • Categories
    • Basic Finance
    • Derivatives
    • Financial Planning
    • Fundamental Analysis
    • Technical Analysis
    • Marketshala
    • Miscellaneous
  • Language
    • English
    • Hindi
    • Bengali
No Result
View All Result
  • Courses
  • Webinars
  • Learn On Elearnmarkets
Elearnmarkets - Learn Stock Market, trading, investing for Free
  • Categories
    • Basic Finance
    • Derivatives
    • Financial Planning
    • Fundamental Analysis
    • Technical Analysis
    • Marketshala
    • Miscellaneous
  • Language
    • English
    • Hindi
    • Bengali
No Result
View All Result
  • Courses
  • Webinars
  • Learn On Elearnmarkets
Elearnmarkets - Learn Stock Market, trading, investing for Free
No Result
View All Result
Home Technical Analysis
Three White Soldiers Candlestick - Formation, Limitation & Example 1

Three White Soldiers Candlestick – Formation, Limitation & Example

Elearnmarkets by Elearnmarkets
September 27, 2022
in Technical Analysis
Reading Time: 6 mins read
0
10.9k
VIEWS
Share on FacebookShare on TwitterShare on WhatsApp

Three white soldiers candlestick is a multiple candlestick pattern used to analyse charts of stocks, currencies, commodities, etc.

Also known as the Three Advancing White Soldiers, this candlestick pattern is used for predicting reversal from a downtrend to an uptrend.

This candlestick pattern is formed after a long downtrend when the bullish forces are more than the bearish forces for three consecutive days.

Here is a complete guide on how to trade with Three White Soldiers Candlestick Pattern:

Table Of Contents
  1. What is Three White Soldiers Candlestick Pattern?
  2. Formation of Three White Soldiers Candlestick Pattern:
  3. Conditions of trading Three White Soldiers Candlestick Pattern:
    • Condition 1:
    • Condition 2:
    • Learn to Identify Trend Reversals with Candlesticks in just 2 hours by Market Experts
    • Condition 3:
  4. Trading Example:
  5. Difference between Three White Soldiers and Three Black Crows:
  6. How to use Three White Soldiers in StockEdge:
  7. Limitations of Using Three White Soldiers:
  8. Key Takeaways:

What is Three White Soldiers Candlestick Pattern?

The three white soldiers pattern is a bullish reversal candlestick pattern that occurs at the bottom of a downtrend.

Join TMP Join TMP Join TMP

As the name suggests, this pattern consists of three candlesticks that are green in color.

This candlestick pattern signals an upcoming uptrend because of the strong buying pressure.

These candlesticks do not have long shadows and open within the real body of the previous candle in the pattern.

Formation of Three White Soldiers Candlestick Pattern:

Here is the formation of Three White Soldiers Candlestick Pattern:

Three White Soldiers Formation

Conditions of trading Three White Soldiers Candlestick Pattern:

Below are some of the conditions that need to be fulfilled for identifying this pattern on the candlestick charts:

Condition 1:

The first candle seems like the continuation of the downtrend.

It is a bullish candlestick meaning the closing price should be more than the opening price and indicates that the bulls are back into the action.

Condition 2:

The second candlestick should also be bullish.

The opening price should be within the real body of the first candlestick most preferably between the midpoint and closing price of the previous candlestick.

Learn to Identify Trend Reversals with Candlesticks in just 2 hours by Market Experts

The closing price should be above the previous candle’s closing price and should be higher than the previous candle’s closing price.

Condition 3:

The third candlestick should also be a bullish candlestick having no or small shadow.

The opening price should be within the real body of the second candlestick most preferably between the midpoint and closing price of the second candlestick.

The closing price should be above the previous candle’s closing price and should be higher than the previous candle’s closing price.

The conditions of the third candlestick are almost the same as the second candlestick.

To know about other candlesticks, read our blog on All 35 Candlestick Chart Patterns in the Stock Market-Explained

Trading Example:

Below is an example of daily chart of USD/INR that shows us how Three Soldiers Candlesticks is formed after a downtrend and the trend got reversed after the formation of candlestick pattern.

Three White Soldiers Example

Difference between Three White Soldiers and Three Black Crows:

The three black crows candlestick pattern is the opposite of the three white soldiers.

Three black crows is made of three consecutive bearish candlesticks.

On the other hand, three white soldiers indicate a shift from the bears to the bulls and is made of three consecutive bullish candlesticks.

How to use Three White Soldiers in StockEdge:

You can also use the Three White Soldiers Candlestick scans in StockEdge web version:

Steps to use Three White Soldiers scans in StockEdge:

Under the “Candlestick Scans” we can see Bullish Reversal scans as shown below:

Bullish Reversal Scans

When we click on the “Bullish Reversal scans” we can see “Three White Soldiers” scan, click on that:

Three White Soldiers Scans

After selecting on it, you will get a list of stocks in which the “Three White Soldiers” pattern is formed.

Limitations of Using Three White Soldiers:

Three white soldiers sometimes also appear during consolidation that is an easy way for getting stuck in the consolidation

One should also watch if the volume is supporting the formation of three white soldiers.

To reduce the limitation of visual patterns, traders should use the three white soldiers candlestick pattern with other technical indicators like trend lines, moving averages, and bollinger bands.

Key Takeaways:

  • Three white soldiers signal reversal from a downtrend to an uptrend because of the strong buying pressure.
  • This candlestick pattern is formed after a long downtrend when the bullish forces are more than the bearish forces for three consecutive days.
  • There are some of the conditions that need to be fulfilled for identifying this pattern on the candlestick charts.
  • One should watch if the volume is supporting the formation of three white soldier

Happy Learning!

Tags: candlestick analysiscandlestick beginners guidecandlestick patternenglishtechnical basicsthree white soldiers candlestick pattern
ShareTweetSend
Previous Post

SEBI New Margin Rules – How it will impact Investors?

Next Post

Saving or Investing – Which one is ideal for a beginner?

Elearnmarkets

Elearnmarkets

Elearnmarkets (ELM) is a complete financial market portal where the market experts have taken the onus to spread financial education. ELM constantly experiments with new education methodologies and technologies to make financial education effective, affordable and accessible to all. You can connect with us on Twitter @elearnmarkets.

Related Posts

Technical Analysis in Stock Trading 2
Technical Analysis

Technical Analysis in Stock Trading

May 31, 2023
6k
The Ultimate guide to Trading Divergences 3
Technical Analysis

The Ultimate guide to Trading Divergences

May 26, 2023
993
Trading Psychology: Guide to Master Your Mind in 5 Steps 4
Technical Analysis

Trading Psychology: Guide to Master Your Mind in 5 Steps

May 24, 2023
3k
Trading Psychology: 7 Keys to Successful Trading 5
Technical Analysis

Trading Psychology: 7 Keys to Successful Trading

May 22, 2023
3k

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Follow Us

Facebook-f Twitter Instagram Linkedin-in Youtube Telegram

Register on Elearnmarkets

Continue your financial learning by creating your own account on Elearnmarkets.com

Register Free Account

Download App

Categories

  • Basic Finance
  • Derivatives
  • Financial Planning
  • Fundamental Analysis
  • Technical Analysis
  • Marketshala
  • Miscellaneous

Popular On Elearnmarkets

  • Market Superheroes:
  • Vivek Bajaj
  • Chetan Panchamia
  • Ashish Kyal
  • Premal Parekh
  • Abhijit Paul
  • Jegan
  • Sivakumar Jayachadran
  • Vishal Malkan
  • Jyoti Budhia
  • Vivek Gadodia
  • Vishal Mehta
  • Piyush Chaudhry
  • Santosh Pasi
  • Gomathi Shankar
  • Market Superheroes:
  • Vivek Bajaj
  • Chetan Panchamia
  • Ashish Kyal
  • Premal Parekh
  • Abhijit Paul
  • Jegan
  • Sivakumar Jayachadran
  • Vishal Malkan
  • Jyoti Budhia
  • Vivek Gadodia
  • Vishal Mehta
  • Piyush Chaudhry
  • Santosh Pasi
  • Gomathi Shankar
  • Courses:​
  • Options Trading
  • Dow Theory
  • Momentum Trading
  • Stock Investing
  • Stock Market for Beginners
  • Harmonic Chart Patterns
  • Algo Trading
  • Elliot Wave Theory
  • Advanced Excel
  • Cryptocurrency
  • NSE Certification Course
  • Courses:​
  • Options Trading
  • Dow Theory
  • Momentum Trading
  • Stock Investing
  • Stock Market for Beginners
  • Harmonic Chart Patterns
  • Algo Trading
  • Elliot Wave Theory
  • Advanced Excel
  • Cryptocurrency
  • NSE Certification Course
  • Webinars:
  • Bank Nifty Scalping
  • Intraday Trading Strategies
  • Options Trading Strategies
  • Options selling
  • Price Action
  • Relative Strength
  • Tax Planning
  • Options Buying
  • Growth Stocks
  • Portfolio Management
  • Relative Strength Index
  • Risk Management
  • Renko Charts
  • Crude Oil
  • Traders Psychology
  • Moving Average
  • Multibagger Stocks
  • Webinars:
  • Bank Nifty Scalping
  • Intraday Trading Strategies
  • Options Trading Strategies
  • Options selling
  • Price Action
  • Relative Strength
  • Tax Planning
  • Options Buying
  • Growth Stocks
  • Portfolio Management
  • Relative Strength Index
  • Risk Management
  • Renko Charts
  • Crude Oil
  • Traders Psychology
  • Moving Average
  • Multibagger Stocks
  • Free Learning Modules:
  • Intraday Trading
  • Options Scalping
  • Swing Trading
  • Financial Modelling
  • RSI Indicator
  • Bollinger Bands
  • Pricing of Futures
  • Personal Finance
  • Initial Public Offerings (IPO)
  • Value Investing
  • Technical Indicators
  • Candlesticks
  • Chart Patterns
  • Option Greeks
  • ELSS Funds
  • Banking and Insurance
  • Real Estate
  • Gold
  • Free Learning Modules:
  • Intraday Trading
  • Options Scalping
  • Swing Trading
  • Financial Modelling
  • RSI Indicator
  • Bollinger Bands
  • Pricing of Futures
  • Personal Finance
  • Initial Public Offerings (IPO)
  • Value Investing
  • Technical Indicators
  • Candlesticks
  • Chart Patterns
  • Option Greeks
  • ELSS Funds
  • Banking and Insurance
  • Real Estate
  • Gold
  • Book Summaries:
  • Rich Dad Poor Dad
  • Psychology of Money
  • The Intelligent Investor
  • The Richest Man in Babylon
  • Think and Trade Like a Champion
  • Value Investing and Behavioural Finance
  • Trading in the Zone
  • Learn to Earn
  • Book Summaries:
  • Rich Dad Poor Dad
  • Psychology of Money
  • The Intelligent Investor
  • The Richest Man in Babylon
  • Think and Trade Like a Champion
  • Value Investing and Behavioural Finance
  • Trading in the Zone
  • Learn to Earn
  • Tools:
  • CAGR Calculator
  • SIP Calculator
  • eLearnOptions
  • Future Value Calculator
  • Present Value Calculator
  • Atal Pension Yojana
  • Cost of Delay Calculator
  • Become a Crorepati
  • Tools:
  • CAGR Calculator
  • SIP Calculator
  • eLearnOptions
  • Future Value Calculator
  • Present Value Calculator
  • Atal Pension Yojana
  • Cost of Delay Calculator
  • Become a Crorepati

© 2023 Elearnmarkets. All Rights Reserved

  • Visit Elearnmarkets
  • Courses
  • Webinars
  • Financial Guides
  • Get Free Counselling
  • Visit Elearnmarkets
  • Courses
  • Webinars
  • Financial Guides
  • Get Free Counselling

Get Elearnmarkets App

No Result
View All Result
  • Article Categories
    • Basic Finance
    • Derivatives
    • Financial Planning
    • Fundamental Analysis
    • Technical Analysis
    • Marketshala
    • Miscellaneous
  • Language
    • Hindi
    • Bengali
    • English
  • Courses
  • Webinars

© 2020 Elearnmarkets All Rights Reserved