Three White Soldiers | RizeTrade

What is the Three White Soldiers Candlestick Pattern?

The Three White Soldiers is a bullish reversal candlestick pattern that appears after a downtrend or consolidation phase. It consists of three consecutive long bullish candles, each closing progressively higher than the previous one, signaling a strong shift from bearish to bullish market sentiment.

Each candle typically opens within or near the previous candle’s body and closes near its high — showing sustained buying pressure and the establishment of a new uptrend.

This pattern is widely regarded as one of the most reliable bullish reversal patterns when confirmed by volume and technical indicators.

🔑 Key Takeaways

 📉 The Three White Soldiers pattern features three strong bullish candles closing progressively higher.
 🕯️ Each candle opens within or slightly below the prior body and closes near its high.
 ✅ It signals a clear shift from bearish to bullish market control.
 🎯 The pattern is most effective after a downtrend or near key support levels.
 💪 Reliability improves with rising volume, RSI recovery, or an EMA crossover confirmation.

🔍 How Reliable Is the Three White Soldiers Pattern?

The Three White Soldiers pattern is widely viewed as one of the strongest bullish reversal signals — but how well does it actually perform under systematic backtesting?

🧪 Our Backtest Setup

Statement:
We used our Candlestick Pattern Performance Matrix to evaluate how consistently the Three White Soldiers pattern predicts sustained bullish momentum.

Evidence:

• 1,457 total instances of the Three White Soldiers pattern

• Tested across forex, equities, and crypto markets

• Timeframes: 4H, Daily, and Weekly

• Focus: measured both reversal accuracy and trend continuation strength

Insight:
Testing across multiple markets and timeframes allowed us to confirm whether the pattern signals genuine bullish follow-through or short-lived reactions.

📈 Backtest Results

Statement:
We compared standalone pattern accuracy with setups supported by additional confirmation indicators.

Evidence:

Insight:
When the pattern formed with strong volume or was aligned with a trend confirmation signal (such as a rising moving average), success improved by up to 9 percentage points.
This suggests that combining visual price structure with basic momentum validation enhances the reliability of the Three White Soldiers setup across assets.

Traders aiming to refine their entry timing can gain further clarity by analyzing their trading performance over time to track how confirmed Three White Soldiers patterns perform within their broader strategy.

📈 How to Trade the Bullish Three White Soldiers Pattern?

This powerful reversal pattern showcases sustained buying strength over three consecutive sessions — a classic signal of trend reversal from bearish to bullish control.

🔍 Entry

Spot the pattern after a downtrend or consolidation to confirm reversal potential.
Look for three strong bullish candles, each opening within or near the previous body and closing progressively higher with small wicks.
Enter long once the third candle closes, confirming strong momentum; aggressive traders may buy on minor intraday pullbacks within that candle’s range.

🛡️ Stop-Loss

Set your stop below the low of the first candle, marking the structural base of the pattern.
This safeguard limits risk if the market fails to sustain bullish follow-through.

🎯 Target

For conservative setups, aim for the nearest resistance or prior swing high as a logical profit zone.
Aggressive traders can extend targets using Fibonacci extensions (1.272 or 1.618) while maintaining a 2:1 reward-to-risk ratio for consistent trade management.

Trading Strategies that Use the Three White Soldiers Pattern

Three White Soldiers + Moving Average Confirmation

Concept
This setup combines the Three White Soldiers pattern with EMA confirmation to validate a shift from bearish to bullish momentum. The EMAs act as dynamic resistance and breakout confirmation levels.

Setup
Apply 20 EMA and 50 EMA to your chart. Watch for the pattern forming below the EMAs and then breaking upward through them, signaling a potential trend reversal.

Long Setup
Enter long at the close of the third candle.
Stop Loss: Below the pattern’s low.
Take Profit: At the next resistance or an EMA extension target.

What Gives It an Edge
Using EMAs ensures confirmation of genuine trend reversal rather than a temporary bounce, filtering out low-quality setups.

Three White Soldiers + RSI Reversal Strategy

Concept
Pairing the pattern with RSI confirmation strengthens confidence in the reversal. The RSI crossing above 50 indicates that bullish momentum has regained control.

Setup
Add a 14-period RSI to your chart. Watch for the indicator to cross above 50 during or after the third candle, confirming momentum strength.

Long Setup
Enter long on a breakout confirmation above the pattern’s high.
Stop Loss: Below the pattern’s low.
Take Profit: Near the next resistance level.

What Gives It an Edge
Momentum confirmation from RSI ensures trades align with strengthening buying pressure, increasing the odds of continuation.

Three White Soldiers + Volume Expansion Strategy

Concept
Volume confirms conviction. Increasing volume across all three candles demonstrates genuine accumulation and buyer commitment behind the reversal.

Setup
Monitor volume trends — the first candle should show a volume increase from the prior downtrend, with volume continuing to rise through the second and third candles.

Long Setup
Enter long after the third candle closes with strong volume support.
Stop Loss: Below the first candle’s low.
Take Profit: At resistance or a Fibonacci extension level.

What Gives It an Edge
Volume expansion validates the reversal’s strength, confirming that institutional buyers are participating rather than short-covering alone.

Real Trading Example: Advanced Micro Devices (AMD)

Context
AMD was in a downtrend, declining from $120 to $105 before reversing.

Price Behavior

• Candle 1: Opens at $106, closes at $111.

• Candle 2: Opens near $110, closes at $114.

• Candle 3: Opens near $113, closes at $118.

The pattern confirms a bullish reversal, signaling the start of a new upward leg.

Trade Setup

• Entry: At $118 (after the third candle close)

• Stop Loss: Below $105 (pattern’s low)

• Take Profit: Around $130 (next resistance zone)

The stock rallied to $132, yielding a 2:1 reward-to-risk ratio and validating the pattern’s strength.

Best Indicators to Combine with the Three White Soldiers Pattern

Common Mistakes and How to Avoid Them

Entering Too Late
Avoid chasing entries if candles appear overextended or after a parabolic move.

Ignoring Volume
Low-volume formations indicate weak participation and higher failure risk.

Overlooking Upper Wicks
Long upper shadows on the third candle may hint at buyer exhaustion.

Skipping Confirmation
Wait for a close above nearby resistance before entering to confirm breakout strength.

Tips for Trading the Three White Soldiers

• Confirm reversals using volume, EMAs, or RSI for stronger validation.

• Wait for a slight pullback after the third candle to improve entry and risk/reward.

• Use multi-timeframe analysis to align with broader bullish momentum.

• Maintain strict risk management — even strong reversal setups can fail in volatile markets.

🌄 Three White Soldiers vs. Morning Star: Momentum vs. Confirmation

Both the Three White Soldiers and Morning Star patterns signal bullish reversals — but their structure and psychology reveal distinct stages of market sentiment.

🧩 Pattern Structure

💡 Key Insight

The Three White Soldiers pattern confirms decisive buyer control, often marking the start of a new bullish trend or the continuation of upward momentum after a pullback.

In contrast, the Morning Star signals the initial phase of a bullish reversal — a transition from uncertainty to renewed optimism as buyers regain confidence.

To evaluate which setup aligns best with your trading approach, consider analyzing performance over time to compare how momentum-driven versus early confirmation patterns impact overall trade consistency.