The Three White Soldiers is a bullish reversal pattern that indicates a shift from a downtrend to an uptrend. It consists of three consecutive long bullish (green) candles that close progressively higher than the previous one, signaling strong buying pressure.

* First Candle : A bullish candle that opens and closes higher than the previous candle.
* Second Candle : Another bullish candle that opens within the first candle’s body and closes higher.
* Third Candle : A third bullish candle that opens within the second candle’s body and closes even higher.

This pattern suggests that the bears have lost control, and the bulls are in charge, signaling a potential trend reversal to the upside.

How Traders Use It:
* Entry Point : Buy when the third candle closes above the high of the previous candle.
* Stop-Loss : Place it below the low of the first candle to manage risk.
* Target Price : Estimate the target using previous resistance levels or other technical indicators.

The Three White Soldiers pattern is used in downtrending markets to identify a strong bullish reversal and capture upward price movement.