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Three White Soldiers Chart Pattern

The Three White Soldiers is a bullish reversal chart pattern often used in Forex trading and other financial markets to signal a potential trend reversal from bearish to bullish. What Is the Three White Soldiers Pattern? The Three White Soldiers pattern consists of three consecutive long-bodied bullish candlesticks, each opening within or near the previous candle's body and closing higher than the previous candle's close. Key Characteristics: Appears after a downtrend or consolidation phase Three bullish candles with: Small or no wicks (shadows) Each candle opens within the body of the previous one Each closes progressively higher Traders often interpret this pattern as a strong signal of buying interest. It can be used to Enter long (buy) positions Confirm a trend reversal Place stop-loss orders below the first candle for risk control Caution: Works best when confirmed with volume, momentum indicators, or support levels Avoid entering late; the third candle can already be nearing overbought conditions Beware of patterns forming in low liquidity times—they may give false signals Pro Tip: Use the Three White Soldiers in combination with: RSI (Relative Strength Index) – to avoid overbought entries Support/Resistance analysis – to confirm breakout zones How to Trade the Three White Soldiers in Forex Step 1: Identify the Pattern Look for the pattern at the end of a downtrend or during a consolidation phase. Confirm that each of the three candles is bullish and successively closes higher. Step 2: Enter a Trade Enter a buy position after the third candle closes. Conservative traders may wait for a small pullback or a bullish confirmation on the next candle. Step 3: Set Stop-Loss and Take-Profit Stop-loss: Place just below the first candle of the pattern or a nearby support level. Take-profit: Use Fibonacci levels, previous resistance, or a fixed risk-reward ratio like 1:2.