Spark Global Limited Reports:
At a time when many traders are scratching their heads trying to figure out how stocks are rising in the midst of the worst economic downturn in nearly a century, it’s more important than ever to use candlestick patterns in your own day-trading strategies to understand price movements.
Candlestick patterns tell traders about price trends and market sentiment.
When used in conjunction with other useful technical indicators such as Pivot Points and Bollinger Bands, they have the potential to be the best trading tool.
Today, we will focus on the candlestick pattern known as the Three White Warriors, which usually occurs when a strong downtrend reverses into a strong uptrend.
What is the “Three White Soldiers” mode?
The three White pawns pattern is a bull market reversal pattern consisting of three consecutive green (or white) candles. This pattern is formed at the bottom of the downtrend and all three candles are bulls and bulls.
It is often used as a reversal signal coming out of a bear market or downtrend, as this creates the best risk/reward ratio.
The candles are nearly the same length, with the opening of each candle above the opening of the one before it. This points to an uptrend due to strong buying pressure.
This pattern is also known as the “three marching soldiers” because it signals the end of the downtrend and clearly indicates a balanced shift from sellers to buyers.
The opposite of the three white soldiers is the three black ravens.
This pattern is represented by three consecutive red (or black) candles forming at the top of the rising trend. It is formed when three bearish candles follow a strong uptrend, indicating that a reversal is taking place.
Three white soldiers indicate that bears are ruling the day, while three of the three black crows indicate a bear movement.
Reprint indicated source：Spark Global Limited information