Technical analysis offers traders a wide range of candlestick patterns to predict price movements. One of the most reliable and bullish reversal patterns is the Three White Soldiers. This pattern, when used correctly, can signal a strong trend reversal and provide profitable trading opportunities. In this post, we’ll explore what the Three White Soldiers pattern is, how to identify it, and multiple ways to trade it effectively.

📌 What is the Three White Soldiers Pattern?

The Three White Soldiers is a bullish candlestick reversal pattern that consists of three consecutive long-bodied green (or white) candlesticks. Each candle opens within the body of the previous candle and closes progressively higher. This pattern usually appears after a downtrend or consolidation phase, suggesting the start of a new bullish trend.

Key Characteristics:

  1. Three consecutive bullish candles.
  2. Each candle opens within or near the body of the previous candle.
  3. Each candle closes near its high, with little to no upper wick.
  4. Volume (if considered) may increase on each candle, showing rising buyer interest.

📉 Where the Pattern Appears

  • At the bottom of a downtrend: Signals a possible bullish reversal.
  • After a period of consolidation: Indicates a breakout in the upward direction.
  • On major support zones: Provides a stronger reversal confirmation.

✅ Confirmation Rules

Before trading, it’s important to confirm the pattern using other indicators or criteria:

  • Volume: Rising volume supports the bullish intent.
  • RSI: Avoid entries when RSI is overbought (>70); wait for a pullback.
  • Moving Averages: Crossing above short-term MAs like 20 EMA adds strength.
  • Support/Resistance Levels: Confluence with horizontal support gives more credibility.

🔍 How to Trade the Three White Soldiers: Strategies

🔸 Strategy 1: Basic Pattern Breakout

Ideal for beginners

Steps:

  1. Identify the Three White Soldiers pattern after a downtrend.
  2. Wait for a slight pullback or doji candle on the 4th day.
  3. Enter a long position at the next bullish candle.
  4. Place the stop-loss below the low of the first soldier.
  5. Target a 1:2 or 1:3 risk-reward ratio.

Example:
A stock in a downtrend forms three bullish candles on increasing volume. On the fourth day, a small doji forms. A strong green candle follows—this is your entry trigger.

🔸 Strategy 2: Three White Soldiers + Support Zone

Combines price action and key levels

Steps:

  1. Draw major support zones from higher timeframes (daily or weekly).
  2. Wait for the Three White Soldiers to form near or at the support zone.
  3. Confirm with volume or stochastic RSI.
  4. Enter long on confirmation.
  5. Stop-loss goes below the support zone or low of the pattern.

Example:
A stock finds support at ₹150 multiple times. It forms a Three White Soldiers pattern at this level. Volume rises, and RSI crosses 30 from below. Entering here gives you high-probability trade with defined risk.

🔸 Strategy 3: Three White Soldiers + Moving Average Crossover

Good for trend traders

Steps:

  1. Use a 20 EMA and 50 EMA.
  2. Look for the Three White Soldiers pattern when price crosses the 20 EMA from below.
  3. Confirm if 20 EMA is sloping upwards.
  4. Enter long at close of the third soldier.
  5. Exit when price shows a reversal candle below 20 EMA or after achieving your risk-reward target.

Example:
In an uptrend revival phase, the stock forms the Three White Soldiers while also closing above the 20 EMA. This double confirmation strengthens the bullish signal.

🔸 Strategy 4: Three White Soldiers + RSI Divergence

For advanced traders

Steps:

  1. Monitor the RSI indicator.
  2. Identify a bullish divergence – price makes a lower low, but RSI makes a higher low.
  3. After divergence confirmation, wait for the Three White Soldiers.
  4. Enter after the third candle closes.
  5. Set stop-loss below the pattern and target resistance zones.

Example:
A stock is in a downtrend. RSI shows higher lows while price hits new lows. Then, the Three White Soldiers form with volume rising. This convergence gives a strong long setup.

🔸 Strategy 5: Three White Soldiers in Intraday Trading

Timeframe: 15 min / 30 min / 1 hr

Steps:

  1. Identify intraday support levels using pre-market data.
  2. Wait for Three White Soldiers to form after a dip or consolidation.
  3. Use VWAP or Pivot Points as confirmation tools.
  4. Enter after breakout of the pattern.
  5. Stop-loss can be tight—just below the low of the pattern.
  6. Exit at previous day’s high or a pivot resistance level.

Note: This strategy requires quick execution and tight risk management.

🧠 Bonus Tips for Trading the Pattern

  • Avoid chasing trades: Always wait for a pullback or minor consolidation after the pattern.
  • Use multi-timeframe analysis: Confirm on higher timeframes like 1D or 1W.
  • Beware of false breakouts: Combine with indicators or candlestick confirmation.
  • Don’t trade in overbought markets: If RSI is >70, the move might be exhausted.
  • Backtest your strategy: Every asset reacts differently—backtest before real money.

🚫 Common Mistakes to Avoid

  1. Entering too late: Once the pattern is overextended, risk increases.
  2. Ignoring volume: No rise in volume? Be cautious—it may be a trap.
  3. Trading against major resistance: Avoid patterns that form just below strong resistance zones.
  4. Not setting stop-loss: Always have a stop-loss based on volatility or support level.
  5. Forcing the pattern: Make sure it meets all criteria. Don’t bend the rules to fit your bias.

🧾 Final Thoughts

The Three White Soldiers is a powerful candlestick pattern that can deliver excellent returns when traded with the right confirmation and strategy. It’s especially useful in spotting bullish reversals early, offering you a good entry before the crowd jumps in. However, like all patterns, it must be used in conjunction with other tools like support/resistance, indicators, and volume analysis for maximum effectiveness.

📊 Have You Used This Pattern?

Have you tried trading the Three White Soldiers in your strategy? Share your experience or ask questions in the comments!