What is the three white soldiers candlestick pattern?

What is the three white soldiers pattern?

The three white soldiers pattern is a candlestick formation that may emerge at the end of a downtrend, signalling a potential reversal from bearish to bullish.

It’s made up of three long‑bodied bullish candlesticks that appear consecutively. Each candle typically opens within or near the body of the preceding candle and closes progressively higher – ideally above the previous candle’s close. The pattern typically forms after sustained bearish price action.

All three candles should have relatively short wicks, reflecting consistent buying pressure throughout each session.

Rules and characteristics

Three consecutive bullish candlesticks

The pattern consists of three back‑to‑back bullish candlesticks. Each candle should close near its high, with a short upper wick – due to sustained buying pressure throughout the session. 

Opens within the body of the previous candle

Each candle opens within the real body (the open‑close range) of the previous candle. This overlap is a key feature – it suggests continued buyer interest without sudden price gaps.

Progressive higher closes

Each candle closes higher than the previous one. The overall progression should be smooth – long lower shadows or indecisive candles may weaken the signal.

Forms after a downtrend or pullback

The pattern is most meaningful when it appears after a clear downtrend or significant pullback. In this context, it acts as a potential bullish reversal signal. If it appears during an extended uptrend, it may instead reflect a continuation rather than a reversal.

Volume and confirmation

Volume confirmation suggests increased participation by buyers, which may help reduce the risk of a false breakout. Some traders also look for supporting indicators such as an RSI reading crossing above 30, or moving‑average convergence, for additional context.

How to identify the pattern in real-time

To identify the three white soldiers candlestick pattern in live market conditions, look for a clear sequence of three bullish candlesticks that meet the core formation criteria – especially during or just after a downtrend.

Here’s a step-by-step:

1. Identify three consecutive bullish candles – analyse the chart for three successive bullish candlesticks. Each should display a relatively large real body and close higher than the prior session. The closing price ought to be near the session high, with small or minimal upper and lower shadows.

2. Opens within the body of the previous candle – each candle in the sequence should open within the real body (the open-to-close range) of its predecessor. This overlap suggests steady buyer interest rather than erratic price action. Wide gaps between candles may signal increased volatility, which may invalidate the pattern.

3. Short wicks, strong bodies – wick size matters. Long upper shadows can imply selling into strength, while long lower shadows may point to indecision or support testing. In a typical three white soldiers pattern, wicks are limited and bodies dominate, signalling firm bullish intent.

4. Appears after a downtrend or correction – the pattern carries greater weight when it forms at the end of a downtrend or near a key support level. It may also appear after a retracement within a broader trend, indicating buyers are regaining control. 

5. Real-time filters and confirmation tools – traders can use automated charting tools or candlestick scanners to spot the pattern as it develops. Once identified, cross-check with other technical indicators.

What does the pattern signal?

The three white soldiers candlestick pattern may signal a possible bullish reversal – particularly when it appears after a downtrend – and represents rising buying pressure across three sessions. Each candle closes progressively higher, often near its high – which suggests that bearish momentum is fading as buyers start to regain control.

As with any candlestick trading approach, market context is crucial. Volume confirmation and supporting indicators, such as RSI or EMA crossovers (eg 9 and 21-period moving averages), help determine whether any shift in sentiment is supported by broader trend strength.

Past performance is not a reliable indicator of future results.

Limitations and common mistakes

Like all candlestick patterns and other technical indicators, the three white soldiers pattern is not foolproof. Here are some limitations and pitfalls to be wary of:

Low-volume setups

Without rising volume to support the candles, the move may lack conviction. Low participation suggests limited buyer strength – making it harder to distinguish a genuine reversal from short-term noise. Prioritise patterns that are accompanied by increasing volume where data is available, as this can signal stronger conviction behind the move.

Ignoring trend exhaustion

The three white soldiers pattern is meant to signal a bullish reversal after a downtrend. However, if it appears following an already extended rally, it may simply reflect temporary momentum rather than a fresh signal. Always check the prior trend – look for the pattern after a clear downtrend or pullback – and be cautious if the market is already overextended to the upside.

Forcing the pattern

Not every set of three green candles qualifies. Traders sometimes label loosely aligned candles as three white soldiers without checking the core structure. The rules are specific: three consecutive bullish closes, each typically opening within the real body (open–close range) of the one before it, with minimal wicks – although minor variations can occur. 

No confirmation from indicators

You can confirm the three white soldiers candlestick pattern using tools like RSI, MACD, and EMA crossovers. For example, an RSI climbing out of oversold territory or a bullish divergence can help validate the reversal. Seek confirmation from additional technical indicators or volume analysis before acting on the pattern alone.

Assuming it's always a reversal

Although often discussed as a bullish reversal candlestick, the pattern can also appear during uptrends as a continuation signal. Analyse and consider broader market context, including prevailing trends, support and resistance, and other momentum signals.

Learn about risk management for CFD traders.

Three white soldiers vs. other bullish patterns

While the three white soldiers is one of the more recognisable bullish reversal setups, it’s not the only pattern used to assess potential trend shifts. Here’s how it compares with some commonly traded bullish patterns:

• The three white soldiers pattern is characterised by its three sequential candles. Each candle opens within the real body of the prior candle, and each closes at a higher price than the previous one.

• The bullish engulfing and morning star patterns rely on shorter sequences, often indicating faster sentiment shifts. These can appear earlier in a reversal but may require more careful validation due to their shorter duration.

• The rising three methods pattern forms during an existing uptrend, and signals a potential continuation of the preceding trend.

Learn more about technical analysis with our 12 chart patterns for CFD traders.

Strategy example: How to trade the pattern

Now, let’s look at a hypothetical share CFD scenario:

Example based on hypothetical price data. This illustration is for educational purposes only and does not reflect real market activity.

Past performance isn’t a reliable indicator of future results.

Explore our trading strategy guides for more technical techniques to consider in the markets. 

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