The three white soldiers is one of the most powerful bullish reversal patterns in candlestick charting. It consists of three consecutive long-bodied bullish candles that march higher like soldiers advancing into battle. When this pattern appears at the bottom of a downtrend, it signals that buyers have decisively taken control and a new uptrend is likely beginning.
What is the Three White Soldiers Pattern?
Three white soldiers is a three-candle pattern where each successive candle opens within the body of the previous candle and closes at a new high. The pattern shows steady, determined buying pressure over three consecutive sessions.
Why it is powerful: Unlike single-candle patterns that need confirmation, the three white soldiers provides its own confirmation through three consecutive bullish days. By the time the pattern is complete, the reversal is already underway with strong momentum.
Three White Soldiers Requirements
For a valid three white soldiers pattern, these conditions must be met:
- Must appear after a downtrend or consolidation
- Three consecutive long-bodied green (bullish) candles
- Each candle opens within the body of the previous candle
- Each candle closes progressively higher
- Small or no upper shadows (closes near the high)
- Bodies should be roughly equal in size
Three White Soldiers Example
Stock ABC has dropped from $50 to $40 and starts to base.
- Day 1: Opens $40, closes $42 (large bullish candle)
- Day 2: Opens $41.50 (within Day 1 body), closes $44
- Day 3: Opens $43.50 (within Day 2 body), closes $46
Each candle makes a higher high, opens within the prior body, and closes near its high. The pattern signals strong bullish reversal.
The Psychology Behind Three White Soldiers
Day 1: First Sign of Buying
After the downtrend, buyers step in and create a strong bullish candle. The long body shows conviction, and the close near the high indicates buyers remained in control until the end. This is the first hint that sellers may be losing power.
Day 2: Confirmation of Buying Interest
The second day opens with a small gap down or within the previous body, which might look like profit-taking. However, buyers quickly take over and push prices to new highs. The consecutive bullish close confirms that Day 1 was not a fluke.
Day 3: Buyers Fully in Control
By Day 3, sellers have capitulated. Another strong bullish candle confirms the trend reversal. The pattern is now complete, and the market has clearly shifted from bearish to bullish sentiment.
How to Trade Three White Soldiers
Entry Strategies
Pattern Completion Entry
- Enter at the close of the third candle
- Pattern is fully confirmed
- May miss some of the move but higher probability
Pullback Entry
- Wait for a pullback after the pattern
- Enter when price retraces to support (often around Day 2 high)
- Better risk-reward but may miss strong continuations
Stop Loss Placement
Place your stop loss below the low of the first candle. This is the pattern's invalidation point. If price falls below this level, the bullish reversal has failed and the downtrend may resume.
Profit Targets
- Target 1: Previous swing high or resistance
- Target 2: Measured move equal to pattern height
- Target 3: Fibonacci extension levels
- Trailing stop: Use the previous candle low as a trailing stop
Variations and Related Patterns
Three Black Crows
The bearish counterpart of three white soldiers. Three consecutive long-bodied bearish candles, each opening within the previous body and closing at new lows. Signals strong bearish reversal at tops.
Advance Block
A weaker version where each successive candle becomes smaller with longer upper shadows. This shows weakening momentum and potential reversal of the three white soldiers signal.
Stalled Pattern
When the third candle is significantly smaller than the first two, it may indicate the advance is stalling. Consider taking partial profits or tightening stops.
Factors That Strengthen Three White Soldiers
- Equal candle sizes: Similar-sized candles show consistent buying pressure
- Small upper shadows: Closes near highs show strong buying into the close
- Increasing volume: Volume rising each day confirms growing conviction
- Support level: Pattern forming at major support adds confidence
- Oversold conditions: RSI below 30 before the pattern strengthens the signal
Warning Signs and Weaknesses
Not all three white soldiers patterns are equally reliable. Watch for these warning signs:
- Very long candles: Excessively large moves may indicate overextension
- Long upper shadows: Upper shadows show selling pressure emerging
- Third candle smaller: Diminishing body size shows weakening momentum
- At resistance: Pattern forming into resistance may face immediate selling
- Low volume: Declining volume questions the sustainability of the move
Real Trading Scenarios
Scenario 1: Three White Soldiers at Market Bottom
After a significant market decline, an index forms three white soldiers at a major support level. The broad-based buying indicates institutional accumulation. This is often a high-probability setup for the start of a new bull market leg.
Scenario 2: Three White Soldiers After Earnings
A stock reports surprisingly good earnings after a decline. Over three days, it forms three white soldiers as investors reassess the company's value. The pattern confirms the fundamental catalyst with technical confirmation.
Scenario 3: Three White Soldiers at Moving Average
A stock in a longer-term uptrend pulls back to its 50-day moving average and forms three white soldiers. This suggests the pullback is over and the primary uptrend is resuming with conviction.
Trading Tips and Best Practices
- Wait for completion: Do not anticipate the pattern; wait for all three candles
- Check the context: More powerful after significant downtrends or at support
- Consider the timeframe: Daily and weekly charts are more reliable than intraday
- Use with other analysis: Combine with support levels and indicators
- Manage expectations: Not every pattern leads to extended moves; take profits when offered
Common Mistakes to Avoid
- Candles too small: Short-bodied candles do not qualify as three white soldiers
- Gaps too large: Large gaps up each day may indicate exhaustion rather than strength
- No prior downtrend: Pattern needs a trend to reverse
- Ignoring resistance: Be cautious if pattern completes right at major resistance
- Chasing extended patterns: Do not buy after the pattern has already made a large move
Track Your Candlestick Pattern Performance
Pro Trader Dashboard lets you categorize trades by pattern and analyze results. See how your three white soldiers trades perform compared to other setups and refine your strategy.
Summary
The three white soldiers is a powerful three-candle bullish reversal pattern that signals a decisive shift from bearish to bullish sentiment. It consists of three consecutive long-bodied bullish candles, each opening within the previous body and closing at progressively higher highs. Look for this pattern at support levels after downtrends, confirm with volume, and place stops below the pattern low. When identified correctly, three white soldiers often marks the beginning of significant uptrends.
Learn more candlestick patterns in our guides on morning star patterns and engulfing patterns.