The 3 White Soldiers Candlestick Pattern is a pattern that signals a strong uptrend reversal. This pattern usually forms at the end of a strong downtrend.
This guide will show you how to recognize this pattern and how to trade using it on the IQ Option platform.
Identifying the 3 White Soldiers Candlestick Pattern
What are 3 White Soldiers candlestick?
The Three White Soldiers pattern consists of 3 bullish consecutive candles. They will usually appear at the end of a strong downtrend. The opening price of each candle is usually higher than the opening of the previous candle. In addition, the close of one candle is higher than the close of the previous candle.
How to trade using the 3 White Soldiers Candlestick Pattern on IQ Option
The 3 White Soldiers Candlestick Pattern is a bullish trend reversal pattern. So whenever you see them, you should place a long buy position. Using the chart above, I'm using 15-minute candles. This means that I can enter a buy position lasting 2 hours or more.
The best place to enter your buy position is on any of the three soldiers. However, it's best if you enter into a trading position with the first soldier. Of course, that would be best, but it is impossible. After all, when the market draws candles we do not yet know if and what, if any, pattern will be drawn. All that remains is to wait.
If a complete pattern appears on the chart, you have two options. The first is to take a buy position immediately after the close of the last of the 3 candles of the pattern. The second option is a little safer. The second is to take a buy position as soon as the market hits the top price of the pattern. At that point, the 3 White Soldiers are also considered to be confirmed.
How effective is the Three White Soldiers pattern?
There are various studies on the effectiveness of candlestick formations. However, there are no complete statistics that examine the performance of patterns across all assets and different time frames. However, it can be stated in some simplification that the 3 White Soldiers Candlestick pattern works as a bullish reversal in more than 80% of cases. That's quite a lot and no surprise here. The 3 strong upward candles show a clear advantage for buyers in the market. It is therefore worth taking advantage of this fact.
Now that you've learned how to identify and trade using the Three White Soldiers pattern, try it out on your IQ Option practice account. Share your results in the comments section below.
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