The Three White Soldiers candlestick pattern is a good signal of the price at the beginning of a strong uptrend in Forex. Traders always pay attention to this candlestick pattern every time it appears on the price chart.
In today’s article, I will give you a full overview of the Three White Soldiers candlestick pattern. How to apply it in Forex trading so that it is most effective is also available.
What is the Three White Soldiers candlestick pattern?
In trading, Three White Soldiers is the name for a Japanese candlestick pattern that reverses from falling to rising in price. This candlestick pattern often appears at the troughs of the market. It is a sharp bounce-back of prices after a long downtrend. This pattern is a very good signal for strong bullish momentum.
The pattern consists of 3 adjacent green candles satisfying 2 conditions as follows:
+ The opening and closing prices of the following candles must be higher than the previous ones.
+ The closing price of each candle must be close to the highest price (which means that the shadow of each candle is very small).
On a Japanese candlestick chart, you can see different types of Three White Soldier candlestick patterns. In terms of meaning, they all bring bullish signals in the future.
As mentioned at the beginning, the Three White Soldiers candlestick pattern usually appears at the intersection between a downtrend and an uptrend. This is a good signal for you to open a BUY order and do bottom fishing.
Or sometimes, this special signal may also appear when the price has already been in an uptrend. This represents the continuation of the uptrend.
How to trade Forex effectively with the Three White Soldiers candlestick pattern
As a warning signal of a strong increase in the market price, the Three White Soldiers pattern is of great interest when the market enters a bull cycle. Here, I will show you how to open a Forex order with this reversal candlestick pattern.
When then appears, open a BUY order as follows:
+ Entry Point: As soon as the price completes the pattern.
+ Stop-Loss: At the opening price of the first candle in the pattern.
+ Take-Profit: when the price touches old resistance levels that have been formed in the past.
Leave any questions or concerns you have about the Three White Soldiers candlestick pattern. This is a trading signal you need to master to be able to trade better. I wish you successful transactions.