Three white soldiers
Three white soldiers is a pattern used in technical analysis on stock market. The pattern predicts a downtrend. The pattern consists of three long candlesticks with relatively short shadows. Each one opens between the lower and upper end of former one and closes much higher.
Such a signal is typically caused by a consolidation between a downtrend. It can be associated with other patterns, such as doji (e.g. [[[gravestone doji]]]). The three white soldiers alone are not a strong signal. The reasons for such a pattern can be different. If the market is bullish, the result can be some consolidation after that pattern, but bias can remain.
Therefore, decisions based on technical analysis should always take into account multiple patterns that indicate some trend.
- Edwards, R. D., Magee, J., & Bassetti, W. C. (2007). Technical analysis of stock trends. CRC press.
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