The Three White Soldiers pattern ranks among the most trusted bullish reversal signals in technical analysis. Traders across stocks, forex, commodities, and crypto markets watch for it to spot major trend shifts. But does it really work?
Studies say yes—when you use it correctly.
According to the Technical Analysis of Stock Trends Project, this pattern has shown an 82% success rate in U.S. stocks when it forms after a clear downtrend. In forex markets, a 65% success rate was recorded in a Journal of Financial Markets study by Park & Irwin. Other research, like David Aronson’s analysis in the Journal of Technical Analysis, confirms similar results across ETFs and commodities.
The key? Use the pattern in the right context. Look for rising volume. Combine it with trend and momentum tools. That’s when the Three White Soldiers stops being just a textbook setup—and starts becoming a real trading signal.
In this guide, you’ll learn exactly how to identify, trade, and confirm the Three White Soldiers pattern, so you can trade with real data and confidence.
What Is the Three White Soldiers Pattern?
The Three White Soldiers pattern is a bullish candlestick signal. It tells you that the market has switched from a bearish mood to a bullish one. You will see three large bullish candles in a row. Each one opens close to the previous candle’s closing price and then climbs higher. All three close near the top of their range, leaving little to no lower shadow. This action shows steady buying pressure and strong momentum.
The pattern appears after a downtrend or a period of price weakness. Each new candle confirms that buyers are becoming more confident. Sellers no longer have control, and demand pushes the market higher step by step. The three soldiers “march” upward, creating a staircase pattern on the chart. Each new candle proves that buyers are holding their ground and winning the battle for price control.
In forex trading, the Three White Soldiers pattern gives you a signal that a currency pair may be reversing direction. For example, GBP/USD has been falling for several days. Suddenly, on the daily chart, you spot three large bullish candles stacked one after the other. Each one opens within the previous candle’s body but closes at a new daily high. That tells you traders are shifting from selling the pound to buying it.
Key Characteristics of the Three White Soldiers
- Three large bullish candles appear one after another.
- Each candle opens within the body of the previous one.
- Each candle closes near its highest price of the session.
- Lower shadows stay small or do not appear at all.
- The pattern forms after a clear downtrend or a period of weakness.
- Each close moves the price higher than the last, showing buyer strength.
- Volume often increases during the pattern, confirming real market interest.
When Is It a True Three White Soldiers?
You can get mistaken if you do not check the details carefully. Many traders see three green candles and assume a reversal without thinking deeper. That is a mistake. You must learn to spot the real Three White Soldiers and confirm it before acting.
Look for the downtrend first. If the market was not in a bearish phase, the pattern loses meaning. Then check the size of the candles. Each candle must show strong bullish control. Remember that small candles or candles with long lower shadows weaken the setup.
Next, you must focus on the closes. Each one must close near the high and higher than the last. That shows real momentum from buyers. Moreover, you need to watch the volume. Strong volume proves that real market players support the move. Weak volume warns you to stay cautious.
Don’t forget to check the market context. Support levels, trendlines, and previous zones of consolidation surely add strength to the pattern.
So, do not rush. Always confirm the setup for real. This habit keeps you away from traps and improves your trading decisions.
Three White Soldiers vs. Other Candlestick Patterns
It is possible for various bullish or bearish setups to look similar on a chart. But each pattern sends a different message about what the market plans to do next.
Three White Soldiers vs. Three Black Crows
The Three White Soldiers and the Three Black Crows look like mirror images of each other. But the meaning behind each pattern is completely different.
- The Three White Soldiers pattern signals the start of a bullish reversal. Buyers step back in after a strong downtrend and take control. You will see three consecutive large green (or white) candles, each one closing near its high.
- The Three Black Crows pattern signals the start of a bearish reversal. Sellers step in after an uptrend and push prices lower for three straight sessions. Each candle closes near its low.
For instance, you’re watching GBP/USD. The pair has been falling for a week. Suddenly, you see three long bullish candles form, one after the other, each closing higher. That’s Three White Soldiers. It suggests a shift from bearish to bullish.
Now flip the situation. Suppose GBP/USD has been rising steadily. You then spot three long bearish candles in a row, each one closing near its low. That’s the Three Black Crows. It points to a possible top, and sellers may soon dominate.
Three White Soldiers show buyers winning after a decline. Three Black Crows show sellers taking over after a rise.
Three White Soldiers vs. Bullish Engulfing and Morning Star
All three of these patterns—Three White Soldiers, Bullish Engulfing, and Morning Star—tell you the market could reverse to the upside. But the structure and strength of the signals are different.
Let’s break it down:
- Bullish Engulfing
- Two candles form this pattern.
- First: Small bearish candle.
- Second: Large bullish candle that fully covers the first.
- This pattern marks the moment when buyers overwhelm sellers in a single move.
- Morning Star
- Three candles form this pattern.
- First: Strong bearish candle.
- Second: A small-bodied candle that signals indecision (sometimes a Doji).
- Third: Strong bullish candle that closes above the midpoint of the first.
- This pattern marks a slow shift from sellers to buyers.
- Three White Soldiers
- Three large bullish candles appear back-to-back.
- Each candle opens within the previous one’s body but closes higher.
- No indecision. No pause. Buyers stay in control from start to finish.
Look at EUR/USD after a big selloff and you might see:
- A Bullish Engulfing if one green candle wipes out the last red one.
- A Morning Star if a big red candle is followed by a small candle, then a strong green one.
- Three White Soldiers if you spot three long bullish candles pushing upward without hesitation.
Bullish Engulfing and Morning Star can show early signs of reversal. But Three White Soldiers tell you the bulls are already in full control. The trend has likely shifted.
Three White Soldiers vs. Shooting Star
Now let’s compare Three White Soldiers to the Shooting Star. At first glance, you might think they both involve strong candles. But the message behind them is opposite.
- Three White Soldiers point to a bullish reversal.
- Shooting Star points to a bearish reversal.
So, it must be clear that:
- In Three White Soldiers, each candle has a long real body and closes near its high.
- In a Shooting Star, the candle has a small real body near the low and a long upper wick. This shows that buyers tried to push higher but failed. Sellers took control before the close.
Suppose USD/JPY has been climbing for days. Then you see a single candle with a long upper shadow and a small body near the bottom. That’s a Shooting Star. It warns of a potential reversal to the downside.
But if USD/JPY has just finished a long drop and suddenly prints three large green candles back-to-back, that’s Three White Soldiers. It suggests buyers are stepping back in force.
How to Trade the Three White Soldiers Pattern?
Now that you can spot the Three White Soldiers, the next step is learning how to trade it. Let’s break down the correct process step by step.
Step 1: Confirm the Pattern
Before you trade, make sure the pattern is real. You must see:
- A strong downtrend or a deep pullback before the pattern appears.
- Three large bullish candles in a row. Each one must open inside the previous candle’s body and close higher.
- Small or no wicks. Each candle must close near its high.
- Healthy volume. More buyers entering the market often show up as rising volume.
If GBP/USD has been falling all week and you spot three solid bullish candles with no long upper shadows, you have a valid setup.
Step 2: Choose Your Entry Point
After confirming the pattern, you need to decide where to enter. Traders use two main methods.
Option 1: Enter at the Close of the Third Candle
- This method is aggressive.
- You place a buy order as soon as the third candle closes.
- The upside is that you catch the move early.
- The downside is that you may enter just before a short pullback.
Option 2: Wait for a Small Pullback
- This method is safer.
- You wait for a slight drop in price after the third candle forms.
- Look for a price to retest the midpoint of the last bullish candle or the high of the first candle.
- This allows you to buy at a better price with less risk.
In EUR/USD, if the third soldier closes at 1.0850, you might wait for a small drop to 1.0830 to enter. That gives you a tighter stop and more room for profit.
Step 3: Set Your Stop Loss
Never trade without a stop loss. The Three White Soldiers can fail if market conditions change suddenly.
Use one of the following stop loss rules:
- Place the stop below the low of the first soldier candle.
- If you want less risk, set the stop just below the third candle’s low.
If the first candle’s low in AUD/USD is 0.6480, you can set your stop loss at 0.6475. That way, if the pattern fails, your loss stays controlled.
Step 4: Set Your Profit Target
You also need to decide when to take profit. Use clear exit rules:
- Target the next major resistance level on the chart.
- Use a risk-to-reward ratio of at least 1:2. If you risk 50 pips, aim to make at least 100 pips.
- Use a trailing stop if the market shows strong momentum.
If USD/JPY prints Three White Soldiers and you enter at 147.80, look for the next resistance at 148.50 or higher. If the market moves fast, trail your stop to lock in profits.
Step 5: Watch for False Signals
Sometimes the Three White Soldiers can appear during a market trap. Be careful when:
- The pattern forms during low volume.
- Price is already near a major resistance level.
- News events are about to be released.
If you ignore market context, you can lose money even if the pattern looks perfect.
Final Words
The Three White Soldiers pattern gives you one of the clearest signs that market sentiment has shifted to the buyers. You should treat it as a serious signal when you see three strong bullish candles marching upward. In fact, you must also check for supporting factors like volume to confirm that real market players are behind the move, not just random price action.
So, always wait for the third candle to close before entering. Then set your stop-loss wisely, preferably below the pattern’s first candle or a key support level. In fact, you should combine this pattern with momentum indicators or moving averages to build stronger conviction.
Remember, trading the Three White Soldiers is more about confirming the pattern, managing your risk, and executing with discipline. That is how you trade like a pro.
