Three White Soldiers & Three Black Crows Candlestick Patterns

If you're a trader, you know that the world of finance is complex and ever-changing. One tool that traders use to identify trends in the market are candlestick patterns. In this article, we'll take a closer look at the Three White Soldiers and Three Black Crows candlestick patterns.

What are the Three White Soldiers and Three Black Crows Candlestick Patterns?

These two patterns are often used to predict the end of an upward or downward trend. They generally indicate a reversal or change in the direction of the trend. However, there is a catch. If the Three White Soldiers appear in the middle of a bull market, they can also act as a continuation pattern. The same can go for the Three Black Crows in a bear market.

Identifying the Three White Soldiers Pattern

The Three White Soldiers pattern consists of three equally large candlesticks, each with small upper and lower shadows. The lows of the second and third candle can't go lower than the middle of the previous day's price range, and the opening price of every candle should be within the body height of the previous one. Finally, the closing price of the second and third candles must be higher than the high of the previous candle.

If you see the Three White Soldiers pattern at the end of a clear downtrend, you want to make sure that there is an increase in trading volume in the market. This could be a positive sign for you if you are considering a potential long position.

Trading with the Three White Soldiers Pattern

Traders love the Three White Soldiers candlestick because it helps them identify a bull market and make profits. Once they're confident that the pattern is legit, they close out some or all of their short-sell positions and start a buy position.

To trade with the Three White Soldiers pattern, place your stop loss just below the shadow of the first candle. For your take profit, take the distance between the entry and stop loss and double it. And voila, just wait for the magic to happen!

The Three Black Crows Pattern

By the way, the Three Black Crows is the same exact pattern as the Three White Soldiers, but in reverse. It consists of three equally large candlesticks, each with small upper and lower shadows. The highs of the second and third candle can't go higher than the middle of the previous day's price range, and the opening price of every candle should be within the body height of the previous one. Finally, the closing price of the second and third candles must be lower than the low of the previous candle.

Conclusion

Candlestick patterns can be a valuable tool for traders, and the Three White Soldiers and Three Black Crows patterns are no exception. By identifying these patterns, traders can make profits in a bull market and potentially avoid losses in a bear market. So, keep an eye out for these patterns and incorporate them into your trading strategy. Happy trading!

Note: Remember that trading involves risk and may not be suitable for everyone. Be sure to do your research and use caution before making any trades.

Watch this video to better understand the concept:

@bittok_crypto_tips Name 5 More Candlestick Patterns 📊 . #cryptotrading #trading #forex #forextrading #crypto ♬ original sound - BitTok Crypto Tips

 

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