Candlestick Pattern: Three White Soldiers

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Serial Candlestick: Three White Soldiers
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Serial Candlestick: Three White Soldiers

Three Advancing White Soldiers, also commonly referred to as Three White Soldiers (TWS), Advance Block and Stalled Pattern are three types of similar candlestick patterns consisting of three bullish candlesticks. These are three moderate trend reversal patterns. TWS usually indicates a weakening movement in the ongoing downtrend and a potential upside trend. However, Advance Block and Stalled patterns have a bearish meaning or connotation and indicate a possible weakness in the ascending trend.

The Three White Soldiers (TWS) pattern is the opposite of the Three Black Crows (TBC) pattern. This pattern is called the Three White Soldiers pattern because it consists of three relatively long bullish (rising) candles that are bright in color. Each of the three candles must be closed at or near the high price for that period and each candlestick moves up steadily.

Any candlestick on a TWS pattern should not have a shadow or axis at the top of a long and preferably open level in the real body of the previous candlestick in the pattern, although the candle after the pattern is not important.

If this TWS pattern appears in a descending trend, then this indicates the potential for power and the possibility of a trend reversal. However, if the three candles above move up significantly, then you may need to be wary of overbought conditions.

The Advance Block pattern is a companion pattern and is similar to the Three White Soldiers pattern as it also consists of three brightly colored bullish candlesticks. However, each successive candlestick in this pattern has a shorter real body and may have a long shadow. A shorter real body candle (and possibly a longer shadow) indicates an increased potential for weakness and when it appears in an ascending trend, it warns of the potential end of a rally (long uptrend). However, since this pattern is a moderate pattern it may not necessarily indicate the appearance of the descending trend as candlesticks are still bullish. Therefore this pattern should be used to protect long position (buy) rather than entering short position (sell). The appearance of bearish candlestick pattern, which will indicate the possibility of the beginning of the descending trend, should be used to enter short positions.

The Stalled pattern, also called the pattern of consideration, is another candlestick pattern consisting of three bullish candlesticks similar to the Three White Soldiers pattern. However, while the first two candlesticks in this pattern have a relatively long body and the third candlestick has a short real body, indicating that the uptrend is beginning to lose momentum. The third candle, the smaller candlestick can separate from the other two candlesticks, in this case into stars.

As with the Advance Block pattern, the Stalled pattern should not mark the occurrence of a descending trend and rather an early warning that the ascending trend is weakening. Therefore Stalled pattern must also be used to protect long position (buy) rather than used to enter short position (sell).

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