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.
