Three White Soldiers: Strong Bullish Pattern

The Three White Soldiers is one of the strongest bullish reversal patterns in candlestick analysis. This formation of three consecutive bullish candles demonstrates powerful buying pressure and often signals the start of a significant uptrend. When this pattern appears after a downtrend, it tells traders that bulls have decisively taken control.

What is the Three White Soldiers Pattern?

The Three White Soldiers consists of three consecutive long bullish (green or white) candles. Each candle opens within the body of the previous candle and closes at or near its high. The pattern shows steadily advancing prices with strong buying conviction over three trading sessions.

Three White Soldiers Formation Criteria

For a valid Three White Soldiers pattern, these elements must be present:

First Candle

• A long bullish candle that appears after a downtrend or consolidation
• Shows initial buying interest emerging
• Should have a substantial body (not a small candle)

Second Candle

• Opens within the body of the first candle (ideally in upper half)
• Closes higher than the first candle's close
• Should be similar in size to the first candle
• Small or no upper shadow (closes near its high)

Third Candle

• Opens within the body of the second candle (ideally in upper half)
• Closes higher than the second candle's close
• Should be similar in size to previous candles
• Small or no upper shadow (closes near its high)

Psychology Behind Three White Soldiers

This pattern demonstrates a powerful shift in market psychology:

• Day 1: After a period of selling, buyers step in with conviction. The long bullish candle shows bears losing control. Shorts begin to worry.
• Day 2: Despite opening with a small gap down into the previous body, buyers push prices higher all day. This confirms Day 1 was not a fluke. More shorts cover and new longs enter.
• Day 3: The pattern repeats with another strong bullish day. Bears capitulate entirely. The consistent advance over three days shows sustained buying pressure, not just a temporary bounce.

How to Trade Three White Soldiers

Entry Strategies

Stop Loss Placement

• Below the first candle: Place stop below the low of the first soldier for maximum protection
• Below the pattern midpoint: Tighter stop below the middle of the formation
• Below the third candle: Aggressive stop for better risk/reward if confident in the pattern

Profit Targets

• Previous resistance levels from the prior downtrend
• Fibonacci extension levels (127.2%, 161.8% of the pattern height)
• Measured move: Height of the three-candle pattern projected upward
• Moving averages as dynamic resistance targets

Factors That Increase Reliability

Volume Pattern

• Increasing volume on each successive candle is ideal
• High volume confirms strong buying interest
• Low or declining volume weakens the signal

Support Levels

Three White Soldiers appearing at key support levels are more significant:

• Previous swing lows
• Key moving averages (50, 100, 200 MA)
• Fibonacci retracement levels
• Round psychological numbers

Prior Trend

• Pattern is most meaningful after a clear downtrend
• The deeper the prior decline, the more significant the reversal
• Pattern in sideways markets is less reliable

Candle Characteristics

• All three candles should be similar in size
• Small or absent upper shadows (closes near highs)
• Each opens within the previous body, not gapping up
• Bodies should be substantial, not small

Pattern Variations and Quality

Strong Three White Soldiers

• All candles close at or very near their highs
• Candles are similar in size
• Increasing volume on each candle
• Appears after clear downtrend at support

Weak Three White Soldiers

• Candles have long upper shadows
• Third candle significantly smaller than first two
• Declining volume
• No clear preceding downtrend

Three White Soldiers Pattern Statistics

Historical analysis shows these approximate success rates:

• Standard Three White Soldiers: 70-75% bullish continuation rate
• With increasing volume: 75-80% success rate
• At key support levels: 78-82% success rate
• Average gain in 10 days: 5-8%

This is one of the most reliable bullish reversal patterns, especially when combined with other technical factors.

Common Mistakes to Avoid

• Buying too late: After three strong candles, price may be overextended short-term. Consider waiting for a pullback.
• Ignoring upper shadows: Long upper shadows on the candles reduce reliability, suggesting selling pressure at highs.
• No preceding trend: Three White Soldiers in sideways markets often fail.
• Unequal candles: If the third candle is much smaller, it suggests weakening momentum.
• Low volume: Without volume confirmation, the pattern may be a dead cat bounce.
• Tight stops: Stops placed too close to current price will get triggered on normal volatility.

Three White Soldiers vs. Similar Patterns

Three White Soldiers vs. Three Black Crows

Three Black Crows is the bearish opposite: three consecutive bearish candles appearing at uptrend tops signal reversal downward.

Three White Soldiers vs. Morning Star

Both are bullish reversal patterns, but Morning Star has a small indecision candle in the middle, while Three White Soldiers shows uninterrupted bullish momentum.

Three White Soldiers vs. Rising Three Methods

Rising Three Methods is a continuation pattern (small pullback candles followed by a large bullish candle), while Three White Soldiers is a reversal pattern.

Risk Management Considerations

When trading Three White Soldiers, keep these risk factors in mind:

• Price has already moved significantly by the time the pattern completes
• Short-term pullbacks are common after three strong days
• Position size should account for distance to stop loss
• Consider scaling in rather than entering full position at once

Summary

The Three White Soldiers is a powerful three-candle bullish reversal pattern that appears at the bottom of downtrends. It consists of three consecutive long bullish candles, each opening within the previous body and closing at or near its high. The pattern shows sustained buying pressure and strong bullish conviction. For best results, look for the pattern at key support levels with increasing volume and after a clear downtrend. All three candles should be similar in size with small or absent upper shadows. This is one of the most reliable bullish reversal patterns when these criteria are met.

Learn more: Three Black Crows and Morning Star pattern.