Three White Soldiers

The Three White Soldiers pattern is classified as a bullish reversal and appears within a downtrend. All three lines can be formed by any candlestick with a white body, appearing as long lines. Doji candles and Spinning Tops are not allowed.

The first line is formed in a downtrend. The next lines, namely the second and third, open above the opening price of the previous candlestick and close above the closing price of the previous candlestick.

In the past, some authors required that the opening price of the second and third lines should be at least half the height of the body of the previous candlestick. Others required that the closing prices should be near the high of the candlestick, meaning that the candles should have very short shadows. However, candlestick patterns and technical analysis, in general, are evolving and the Three White Soldiers pattern can be used as an example of such evolution.

If the pattern is followed by a candle that closes below the opening price of the first line, it should be seen as a false signal.