The 3 White Soldiers Candlestick Pattern is a pattern that can signal an uptrend reversal. This pattern usually forms at the end of a strong downtrend.
This guide will show you how to recognize this pattern and how to trade using it on the IQ Option platform.
Key Takeaways🔑
| →The 3 White Soldiers pattern is a bullish reversal signal at the end of a downtrend. It does not work every time. |
| →Consists of 3 consecutive bullish candles with each opening and closing higher than the previous. |
| →Trade cautiously, apply risk management, and always perform your own analysis before executing a trade. |
Identifying the 3 White Soldiers Candlestick Pattern
What are 3 White Soldiers candlestick?
The Three White Soldiers pattern consists of 3 bullish consecutive candles. They will usually appear at the end of a strong downtrend. The opening price of each candle is usually higher than the opening of the previous candle. In addition, the close of one candle is higher than the close of the previous candle.
Three White Soldiers patternFor a valid 3 White Soldiers Candlestick Pattern to form, all three bullish candles must not be special (for example doji or pin bars).
What about the 3 Black Crows?
3 Black Crows candlestick formation is twin paternity to the one discussed today. Thus 3 Black Crows is a bearish reversal pattern. It requires an uptrend first. This trend is broken by 3 downward candles which have long bodies. The 3 Black Crows setup has its own section further down this page.
How to trade using the 3 White Soldiers Candlestick Pattern on IQ Option
The 3 White Soldiers Candlestick Pattern is a bullish trend reversal pattern. So when a complete pattern appears at the end of a downtrend, you can consider a long (buy) position. Using the chart above, I’m using 15-minute candles. This means that I can enter a buy position lasting 2 hours or more.
The best place to enter your buy position is on any of the three soldiers. However, it’s best if you enter into a trading position with the first soldier. Of course, that would be best, but it is impossible. After all, when the market draws candles we do not yet know if and what, if any, pattern will be drawn. All that remains is to wait.
If a complete pattern appears on the chart, you have two options. The first is to take a buy position immediately after the close of the last of the 3 candles of the pattern. The second option is a little safer. The second is to take a buy position as soon as the market hits the top price of the pattern. At that point, the 3 White Soldiers are also considered to be confirmed.
The 3 Black Crows pattern: the bearish mirror
The 3 Black Crows pattern is the mirror image of the three white soldiers. It is a bearish reversal pattern that forms at the top of an uptrend: three long bearish candles in a row. They show that the sellers have taken over from the buyers.
How to recognize it
- It needs an uptrend before it. Three falling candles in the middle of a downtrend, or inside a range, are not this pattern.
- The candles are long and bearish. Each one usually opens lower than the one before and closes lower than the one before.
- As with the soldiers, special candles such as a doji or a pin bar do not count: all three candles must be real bearish candles.
How to trade it on IQ Option
Place a sell (Lower) position, as the pattern signals a trend reversal down. Like the soldiers, you have two entry options. The first is to sell immediately after the third candle closes. The second is a little safer: wait for the price to break below the lowest price of the pattern, at which point the 3 Black Crows are considered confirmed. Do not trade before the pattern is complete: three falling candles are only a pattern once the third has closed.
How long to hold the trade depends on your chart interval. The earlier black crows guide used 1-minute candles and held the trade for 5 to 10 minutes, which is about five to ten candles; the soldiers example above uses 15-minute candles and 2 hours or more, which is eight candles or more. On a margin (CFD) trade, a common stop loss goes just above the highest point of the pattern, and a take profit is set from your reward-to-risk ratio.
Like every candlestick pattern it gives false signals, particularly in a ranging market, so confirm it with a trend line, a moving average or an indicator such as the RSI before you trade. To practice, scroll back on a EUR/USD chart and mark every black crows or white soldiers pattern on the 5-minute, 15-minute, 1-hour and 4-hour charts. Count how often each appears and how often the price moved the way the pattern suggested.
Pros and Cons of the 3 White Soldiers Pattern👍👎
| Pros | Cons |
|---|---|
| 👍 Clear three-candle bullish reversal shape | 👎 Might be less effective in ranging markets |
| 👍 Easy to identify with practice | 👎 No pattern guarantees success |
| 👍 Can be combined with other indicators | 👎 Reliability varies across assets and timeframes |
| Bullish Reversal Patterns | Bearish Reversal Patterns |
|---|---|
| 3 White Soldiers | 3 Black Crows |
| Hammer | Hanging Man |
| Morning Star | Evening Star |
| Bullish Engulfing | Bearish Engulfing |
How effective is the Three White Soldiers pattern?
There are various studies on the effectiveness of candlestick formations. However, there are no complete statistics that examine the performance of patterns across all assets and different time frames. We could not find a reliable success rate for the 3 White Soldiers pattern. An earlier version of this page said that it works as a bullish reversal in more than 80% of cases, but gave no source, so we removed the figure. Three strong upward candles show that buyers had the advantage while the pattern formed. That does not tell you what the price will do next, so confirm the signal with other tools and test it on the Practice account before you trade it.
Now that you’ve learned how to identify and trade using the Three White Soldiers pattern, try it out on your IQ Option practice account. Share your results in the comments section below.
Good luck!
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Q&A: Frequently Asked Questions About the 3 White Soldiers Pattern
- 💡 Q: How do I confirm the 3 White Soldiers pattern?
A: Wait for the completion of the third bullish candle and ensure that each candle opens and closes higher than the previous one. - 💡 Q: Can the 3 White Soldiers pattern be used in any market or timeframe?
A: While it can be observed in various markets and timeframes, its effectiveness may vary. Always analyze the context and use additional confirmation tools. - 💡 Q: Can the 3 White Soldiers pattern be combined with other technical indicators?
A: Yes, it is highly recommended to combine this pattern with other technical indicators to increase the probability of success. - 💡 Q: How do I manage risk when trading the 3 White Soldiers pattern?
A: Apply proper risk management techniques, such as setting stop-loss levels and defining position sizes based on your account equity and risk tolerance. - 💡 Q: How can I practice identifying and trading the 3 White Soldiers pattern?
A: Use a demo account or paper trading platform to practice identifying and trading the pattern without risking real money.
