Let us look at a real-life example of three white soldiers candlestick pattern. In simple words, the volumes of the candles in three white soldiers pattern should be in increasing order. The volume traded on the third day should be more than the volume traded on the first day of the pattern.Īlthough the volume traded on the second day does not matter much, but if it is more than the volume traded on the first day, it is an added advantage for us. If the pattern is supported by traded volumes, it becomes much stronger. In order to use Three White Soldiers Candlestick Pattern for trading purposes, one should also pay attention to other factors like volume of trades, Relative Strength Index (RSI), etc. This pattern works very well if the upper shadows of the candlesticks are very small or absent altogether (which means equal closing price and the high price of a trading session) There can be 8 possible combinations of candles in this pattern. There are no upper and lower shadows in the candlestick. Note: In a Three White Soldiers Candlestick Pattern, the first candle or the second candle or the third candle or any two of them or all of them can be bullish marubozu candles.Ī bullish Marubozu candle means that the opening price of the stock is the low price of the day and the closing price is the high price of the day. Similar to the second day’s candle conditions, the third candle should break the high of the second day’s candle. The closing price must be above the close price of the previous day’s candle. The opening price of the second-day candle should preferably be between the middle point and high price of the previous day’s candle. It’s opening price should lie within the body of the previous red candle. The third candle should again be green in colour and can either be a long or small candlestick. Also, the second-day candle should break the high price of the first day’s candle. The second candle should also be green in colour and can either be a long or small candlestick. It can be a small or long bullish candle. ![]() ![]() It should be green in colour which means that the close price is higher than the open price of the security. The first candle is seen in an ongoing downtrend. ![]() Here are the specific conditions that need to be met in order to identify a pattern as a Three White Soldiers Pattern: One should also pay attention to the location of the pattern in the chart. Generally, the Three White Soldiers Candlestick Pattern form a support zone. This momentum in the upward direction indicates the beginning of the bullish trend. The closing of each candle should be above the close of the previous day’s trading session. After the opening, the price of the stock should be pushed higher throughout the trading session. In this pattern, each candle needs to open a little above the open price of the previous day. The traders who have been playing short in a security exit from the trade as soon as they spot a three white soldiers pattern in the charts.Ī nd the traders who have been looking for an opportunity to buy securities or play long, use this pattern as an entry point. Traders use this pattern as an entry or exit point. ![]() This means that the price of the security has remained within the low and high range of the day. The candles in three white soldiers should have long bodies with short or nonexistent upper and lower shadows. There are three consecutive green candles with long bodies on three trading days.Ī candlestick chart shows open, low, close and high prices of a trading day. Thus, even if you are a beginner trade, even then it won’t be much of a problem for you to identify it amidst a lot of chaos in the market trend. No calculations need to be done by traders or investors to spot it. Three White Soldiers Candlestick Pattern is a visual pattern and is quite easy to detect in a chart. It happens after a long downtrend when bullish forces start becoming greater than the bearish forces on three consecutive days.Īfter this bullish pattern is identified in technical charts, an opportunity to take a long position arises in order to gain an advantage of reversal of the downtrend. This pattern is also known as Three Advancing White Soldiers. to predict the reversal of the downtrend. Three White Soldiers Candlestick is a pattern used in technical analysis of stocks, currencies, indices, etc.
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