Japanese candlesticks - Three white soldiers

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Three white soldiers



Definition: A three white soldiers structure is comprised of three Japanese candlesticks. The closing of each candlestick must occur above the previous one and in the upper part of the current candlestick. The candlesticks must be approximately the same size. Ideally, the opening should occur in the body of the previous candlestick while remaining above the mid-point.

Illustration:

Three white soldiers
Characteristic: A three white soldiers structure may form following a significant increase (several bullish candlesticks) or a reversal of the trend.

Significance: A three white soldiers structure is called a continuation pattern, it indicates continuation of the bullish movement. This reflects gradual and cautious progression.

Note: This structure may also signal a reversal of the trend if it follows a significant decline or occurs at lower levels.

Invalidation: If the candlestick following the three white soldiers is bearish, the structure is invalidated.

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