Three White Soldiers: The Bullish Pattern That Signals a Sustained Reversal

Three consecutive sessions. Each one opens within the prior candle's body. Each one closes higher than the last. No gaps, no hesitation — just three candles of progressive buying pressure.

Three white soldiers doesn't just show that buyers are present. It shows they've been systematically pushing price higher for three full sessions. That's not a bounce — that's a shift in control.

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What Is Three White Soldiers?

Three candles, all bullish, all progressively higher closes:

Candle 1: A bullish (green) candle appearing after or during a downtrend.

Candle 2: Another bullish candle that:

• Opens within Candle 1's body (not gapping up above it)
• Closes higher than Candle 1
• Has a similar or larger body

Candle 3: A third bullish candle that:

• Opens within Candle 2's body
• Closes higher than Candle 2
• Has minimal upper wick (close near session high)

Formation rules:

• Three consecutive bullish candles
• Each opens within the prior body (the "stepping" behavior)
• Each closes progressively higher
• Minimal upper wicks (sellers couldn't push back in any session)
• Context: After a downtrend

Strength rating: 85/100.

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The Psychology

Three sessions of sustained buying with no meaningful pushback from sellers.

The "within the prior body" opening is the key detail. If the candles gapped up dramatically, it would suggest a one-time catalyst. The fact that each candle opens modestly within the prior range shows steady, persistent buying — not a panic gap. This is accumulation in action.

The minimal upper wicks show that sellers couldn't push back in any of the three sessions. Buyers closed near the highs every single day. That's not a coin flip — it's a market where buyers are clearly in charge.

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What It Means Based on Position

At the Bottom of a Downtrend — Highest Conviction

Three white soldiers after a sustained decline says: "The downtrend is over, and the reversal has already begun over three sessions." You're not watching the reversal unfold — you're seeing three candles confirm that it already has.

The longer and more sustained the prior downtrend, the more significant the pattern. Three white soldiers after a 3-day pullback is less meaningful than three white soldiers after a 30-day bear trend.

After a Capitulation Candle

If the pattern immediately follows a massive red candle (capitulation — heavy volume, gap down), the three white soldiers are even more powerful. The capitulation exhausted sellers; the soldiers confirm buyers have filled the void.

On Higher Timeframes

Three white soldiers on the weekly chart represent three full weeks of systematic buying. That's a significant reversal signal with serious structural implications. Three white soldiers on the 1-hour chart represents three hours — useful for short-term trading but far less structurally meaningful.

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How to Trade Three White Soldiers

Entry: Because this is a three-candle confirmation, the pattern is largely self-confirming. Entry can be on the close of the third candle or the open of the fourth session.

Stop loss: Below the low of the first candle in the three-soldier sequence. If that level fails, the pattern and the reversal thesis are invalidated.

Take profit: Previous resistance level, prior swing high, or a measured move based on the height of the three-candle pattern.

Caution — parabolic extension risk: Three large consecutive green candles also mean price has moved significantly from recent lows. Chasing entries far above the pattern low carries its own risk. Many traders wait for a pullback to one of the three candles before entering, rather than buying the breakout.

Volume check: Volume should be consistent or increasing across the three candles. Increasing volume on each successive candle shows building momentum. Declining volume on the third candle is a warning that the move may be losing steam.

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Warning: Three White Soldiers at the Top of a Rally

When three white soldiers appear not at the bottom of a downtrend but at the top of a sustained uptrend, it can signal a blow-off top rather than a fresh reversal. Three parabolic candles at the end of a long rally are more likely to precede exhaustion than continuation.

Context check before acting: Is this after a decline (reversal context) or after an extended rally (potential top)?

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