Three white soldiers is a three day trend reversal pattern.
This pattern happens after a downtrend. It consists of three large bullish candlesticks with each of them closing higher than the previous one. Each of these candlesticks should open within the body of the previous one. The upper wicks should be very small or non-existing
Psychology of Three white soldierspattern is that during downtrend one large bodied bullish candlestick on Day 1 indicates that bulls managed to keep the price of the security at high which indicates strength. This is repeated on Day 2 and Day 3. As Open, High, Low and close of these bullish candlesticks are higher than the previous days candlesticks, it indicates the strength of bullish momentum and signals that prices are moving up.
Practice Three White Soldiers – Beginner
Practice Three White Soldiers – Intermediate