The Three White Soldiers Candlestick Pattern

The Three White Soldiers pattern signals a possible shift from bearish to bullish markets. It's kind of fascinating how this old-school pattern still works in 2025 across stocks, forex, and crypto trading. Traders seem to trust it.

What It Looks Like

Picture this: three bullish candles in a row. Simple but powerful.

First candle: A long green one after prices have been falling. It stands out.

Second candle: Another bullish one. Opens somewhere inside the first candle's body. Pushes higher.

Third candle: The final green soldier. Opens within the second candle's range. Closes even higher.

The pattern looks best when these candles don't have much of those lower shadows. Clean moves up.

The Psychology Behind It

Before this pattern shows up, bears typically rule the market. Things look gloomy.

Then suddenly—buying interest! The first green candle appears. Something changed.

The next two candles? More buyers stepping in. Bears try to fight back but can't push prices down much.

It's not entirely clear why this happens sometimes, but the whole sequence reveals a mood shift. Bearish to bullish. Just like that.

The market seems to gain confidence with each new candle.

Trading It in 2025

Market data suggests this pattern works best as a reversal signal in stocks. For forex? It's better in mean reversion plays.

Many traders jump in above the third candle. They'll typically put stops below the first one. Makes sense.

This pattern hits different compared to Morning Stars or Three Inside Up formations. The soldiers show steady, persistent buying—three straight punches upward instead of a complex dance.

Not always perfect, but worth noticing when these three soldiers march into view.