Three White Soldiers / 三兵・陽線三本
Reference values based on Bulkowski's "Encyclopedia of Chart Patterns". Data is primarily from U.S. markets and may differ for other markets.
A powerful bullish reversal pattern consisting of three consecutive large bullish candles. Each candle opens within the previous candle's body (preferably above the midpoint) and closes at or near the high. When appearing after a downtrend or consolidation, it signals the start of a strong uptrend. Known as a classic formation signaling a definitive trend reversal.
Enter long at the next candle's open after the third bullish candle confirms. Or enter when price exceeds the third candle's high. Confirm the third candle has a sufficiently large body.
Project the combined range of the three bullish candles upward from the third candle's close. Or target the nearest resistance line.
Place a stop-loss slightly below the first bullish candle's low. A tighter stop below the second candle's low is also possible.
Ideally, volume gradually increases across the three candles. The most reliable pattern has the highest volume on the third candle. Declining volume indicates weakening upward momentum.