The pattern of the Three White Soldiers is a popular pattern of bullish chandeliers. For most traders it is quite easy to detect in real time given the 3 successive powerful candles. In addition, in the right context you can point out the reversal of a trend. In this post we will discuss the context, requirements and a free video on how to change this pattern.
If you are unfamiliar with chandeliers in general, check out our Chandelier Patterns Guide. In this post, we’ve created a free infographic trick sheet for you to use with your business, along with many bullish and bearish examples.
Video tutorial of Three white soldiers
Al Hill, our internal trade expert, has put together a quick video explaining the pattern. Take a look before you start with the tutorial.
The Three White Soldiers is a pattern of Japanese chandeliers consisting of three or more bullish candles. 
Candles are white because the positive movement of prices in Eastern technical analysis is represented in white and not in green (as most chart platforms are by default these days).
The reference to soldiers lies in the context of the battle between oxen and bears. Visually, they move forward without any hindrance.
3 Requirements for confirmation
Now that you have the picture of the candle pattern of the three white soldiers, I hope you start seeing the pattern of your letters more often. Sometimes studying chandelier patterns can be very similar to listening to a new song, as it gets stuck in your mind.
But not all observations of a pattern are marketable.
With most chandelier patterns, one trader may see a bullish setting, while another may see bearish signs. For this reason, it is essential to qualify the context of the candle patterns before making a trade.
Then we’ll get into it three clear requirements you should look at when the candles are presented on the chart.
First requirement: three bullish bullish candles
The first rule for the pattern is that you need clean candles with a decent size. By net, we mean without much sales pressure. Ideally, you don’t want long, top, or bottom wicks.
All these candles must end in a positive way and the candles cannot infringe the minimum of the previous chandelier. For reference, see the image above.
Then the candles should be of a healthy size, where the opening is essentially the minimum of the period and the chandelier closes near the maximum. The price advance for each candle should be considerable compared to other candles in the chart
Here we do not look at any doji or any narrow-bodied candle.
In the right context, this suggests ease of upward movement. A bullish sign.
2nd requirement: training at the end of a bearish movement
This requirement is a little more subjective and more difficult to identify. Essentially, the weakness of a stock needs to be identified and then the three white soldiers show up to the rescue.
Contextually, it can occur when there is a lack of supply in the market after a strong sale, pointing to a large investment. A short cover can feed the Three White Soldiers from the minimums.
This may occur after a clear downward trend or after a retreat of the shares at the end of a trading interval.
3rd requirement: large volume signature
It is not discussed so often, but you need to see the volume in the settings to validate its intensity.  If you come across three white soldiers who have little volume, this could mean that there were a handful of weak retailers who came in too soon.
Without volume, this pattern is more likely to tip over, thus leaving your position.
Graph of three white soldiers: example 1
In the first graph example, we review the SBAC symbol. One of the first interesting points is that the stocks have a strong upward movement in the opening and then flip over.
Outside of this weakness, SBAC prints Three White Soldiers. This indicated that the weakness had diminished and that the actions would try to develop some kind of base.
The only problem with this particular setting is the volume. As we said above, the volume must accompany the configuration so that the signal has real weight.
The light volume of the pattern of the Three White Soldiers for SBAC did not ruin the trade, as the stocks were able to run through the daily highs.
However, stocks exceeded at that time and developed a range.
So in this example, while SBAC didn’t tip over, the stocks didn’t make the considerable move we would have expected with this setup either.
Graph of three white soldiers: example 2
In this example, do you see how MTN was sold all day? The stock had a large drop in volume followed by three white soldiers. Once more, the volume did not continue with the soldiers.
So what happened next?
The shares had a small slit back to the downtrend line only to drag down to the close.
Are you starting to see a trend with a weak volume?
True, sometimes soldiers can print to the letter, but they are not always your front-line heroes.
Graph of three white soldiers: example 3
Now that the failed examples are out of the way (it’s always good to have good skepticism with any pattern), let’s turn our attention to a formation of Three White Soldiers that works very well.
After a strong overflow in a support area, DK prints three white soldiers with a decent volume and the material rises again to the highest recent swing.
Graph of three white soldiers: example 4
We will save the best for last. In this example, EYES has been on an upward trend since the morning consolidation. Now that it’s above its previous resistance, we get a bit of a pullback in price action, just enough to suck shorts into the trade.
Once the shorts become nice and cozy, the bulls come in revenge to regain their trend.
Like the other examples, note the massive volume signature of these Three White Soldiers marching toward new highs.
This particular value ran another 400% since then. So you can see that context is everything.
Why is it difficult to change the pattern of the candlesticks of the three white soldiers?
Everything you’ve read on the Internet probably praises this training and the power of its trend prediction capabilities. And it can be a good pattern for that reason, no doubt.
However, depending on your trading style, this pattern may be difficult to trade for some of the reasons listed below.
1. Difficulty buying sales
Many traders don’t like to buy sales or stocks that go down. You may have heard of the old adage, “Don’t you try to grab a falling knife?” Well, this is no different.
Trying to time the bottom can be difficult and risky, you never know when stocks might go down, which will stop you. Or even worse, stopping you with a horrible stuffing.
2. The risk is too broad
The difficulty in buying the Three White Soldiers is that they are very wide body candles. As noted in the examples above, waiting for the last soldier to train can create an emotional hurdle if you plan to set the risk at the lowest of the day.
If you bought three white soldiers at the confirmation of the last candle, these are three really big candles to stop them. There is simply too much risk in trading in relation to the potential for rising profits.
As a consolation, if the pattern is extremely bullish with the volume that accompanies it, you may decide to stop at the end of the last soldier’s candle. This could be a solution to the risk problem.
Otherwise, you can wait for a setback to re-test the demand for these three candles and take your long position there.
3. Purchasing the Pullback may not work
Those of you familiar with the setup will say, “Well, duh, don’t buy the broken third candle.” As mentioned above, you could only expect a slight decline in light volume after the three white soldiers develop.
Maybe you buy a 50% discount from the highest of the pattern, if you get it.
This does not always work. As you can see with the EYES example above, we never did this new test.
However, the EYES example is that we tried the maximum of the third soldier’s candle again twice and both of them kept up well with the new trend.
Again, the key is the context and the ability to set risks based on the potential benefit you can gain in trading.
An alternative point of purchase
Experienced traders prefer their patterns to start and move urgently. For this reason, you could start a position at the expected position of the three white soldiers, adding the volume you confirm.
This is more of an anticipated strategy if you spot high demand on tape or level II. After completing the training, you can make a decision to add or subtract the trade depending on the context.
How to practice the three white soldiers
If you are thinking of changing the pattern of three white soldiers, you can practice setting identification within a simulator by reproducing tick data from more than 11,000 symbols over the last 3 years.
You can then work on developing your own specific rules for entrances, stops, and targets.
As always, be sure to ask yourself the following questions when practicing any setup:
- what qualities work for each particular configuration
- what criteria were met or not
- how the volume was associated with the pattern
- where you could set your risk and benefit goal
- how many of your trades worked or not
For more information on candle patterns, check out our free technical analysis section dedicated to these great trading tools.
- Three white soldiers. Wikipedia
- Three white soldiers. candlescanner.com
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