Three Advancing White Soldiers Candle Pattern Explained (real chart examples)

Three Advancing White Soldiers Candle Pattern Explained (real chart examples)
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Three Advancing White Soldiers Pattern is a candlestick chart pattern which signals a potential reversal in the market. In this article we will show you how to identify it in the right market position with real chart examples.

What is the Three Advancing White Soldiers Candle Pattern?

The Three Advancing White Soldiers Candle Pattern is a three candle pattern which signals a reversal in the market. The Pattern is Bullish.

The Bullish Three Advancing White Soldiers Candle should be identified as a signal when occurring in a down-trending market or at the bottom of a range.

Three Advancing White Soldiers Candle Pattern Criteria:

  • Three rising (advancing), consecutive green (bullish) candlesticks.
  • The candles should close at , or near, their highs (small or no upper shadow).
  • Each candle should open within or very close to the prior session’s real body (ideally no large gaps).

Additional Notes:

  • If this pattern appears at the bottom of a range in an area of consolidation (stable prices), then it is a potential sign of strength ahead.
  • The three white soldiers are a gradual and steady rise with each white line opening within or near the prior session’s white real body which shows potential for a sustainable rise in the market.
  • If the Three Advancing Soldiers form on very strong price action with the second and third candle opening near the high of the previous candle and with relatively large candles, it should be treated with caution. This move could be unsustainable or form a Bull Trap.

Quick Reference Guide – Candlestick Basics. If you need a reminder of what candlesticks are have a look at our free PDF – Candlesticks Explained.

The criteria and examples above are just the technical definitions of this pattern. However patterns are only useful with context and with real chart examples.

No pattern will ever exactly match the criteria and in order to be a useful signal must occur in the correct place in a trend. Let’s start by looking at the the classification table for this pattern.

Bullish Three Advancing White Soldiers Pattern Classification Table

Number of Candles In Pattern 3
Type: (Reversal/Continuation) Reversal
Bullish/Bearish/Indecision Bullish
Market Conditions: Range, Down-trend, Up-trend Down-trend, Ranging
Position: Top, Bottom, Range Bottom

What Price Action Does The Three Advancing White Soldiers Pattern Represent?

The Three Advancing White Soldiers Pattern is formed by bullish price action. It is formed by consecutive green (bearish) candles. Each candle’s close is higher than the previous (the price is advancing).

Ideally each candle closes near it’s high creating a small upper shadow. This pattern, when seen in a down-trend, could suggest that the bulls have taken control and the down-trend may have lost steam leading to a potential reversal.

Like many candle patterns it is often better as a warning signal to review your current position rather than as a signal to enter the market.

In fact, the price action represented by this pattern is quite likely to be followed by a counter reversal move to maintain the trend or retest resistance. This is why the pattern is better when seen in an area of consolidation at the low of a downtrend.

The signal is best used with confirmation or may give more confidence if it forms at an area of resistance.

Hint: It is always good practice to look for confirmation for any signal that you are looking to trade.

Three Advancing White Soldiers Example With Confirmation

In the example below of the US500, the market was in a down-trend. A sharp selloff occurred followed by a retracement.

On the second attempt to break down, the low was rejected by the formation of the Three Advancing Soldiers Pattern.

This also formed a double bottom at the same time giving more confirmation of the rejection of the move down.

Three Advancing White Soldiers Candle Pattern Example With Confirmation
Three Advancing White Soldiers Candle Pattern Example With Confirmation

In What Market Conditions Does The Three Advancing White Soldiers Pattern Become A Signal?

To recap, the Three Advancing White Soldiers Candle Pattern can be seen as a potential signal when forming at the bottom of a down-trend or the bottom of the range.

It is preferable to see it in an area of consolidation following sustained down-trend. The pattern is best when it doesn’t gap up. A strong move up in down-trend could be a bull trap.

It is a weak signal in itself and is best used with confirmation or if formed at a level of support. Let’s look at a couple of real chart examples.

Bullish Three Advancing White Soldiers Candle Pattern In A Ranging Market

A ranging market is one where the price action moves up and down between two sets of support and resistance. This is also known as a sideways, balancing or horizontal market. In essence the price action is struggling to break out of the range decisively either on the upside or downside.

Ranging Market Example
Ranging Market Example

As you can see in this example of the US500 market the formation of the Three Advancing Soldiers Pattern indicated that the market was unlikely to break down.

The market subsequently moved back to the top of the range. This is another example of how candle patterns are of signals of what not to do rather than a signal to enter the market.

In this instance, it wasn’t a good buy signal but it was a good signal that it was not a good opportunity to short the market in the hope of a break to a lower low.

Three Advancing White Soldiers Candle Pattern Example in a Ranging Market
Three Advancing White Soldiers Candle Pattern Example in a Ranging Market

Bullish Three Advancing White Soldiers Candle Pattern In A Down-Trending Market

A down-trending market is one where the price action generally moves down over time and is characterized by lower lows and lower highs.

Down-trending Market Example
Down-trending Market Example

In the example below of the EURUSD Market, the market was downtrending. The market then lost momentum and had a short period of consolidation followed by the formation of the Three Advancing Soldiers Pattern.

The market then moved back up on strong price action which reversed the trend and continued in an up-trend from there.

Three Advancing White Soldiers Candle Pattern Example in an Down-trending Market
Three Advancing White Soldiers Candle Pattern Example in an Down-trending Market

Candle Pattern MT4 Indicator Downloads

If you trade using MT4 then why not try out our free MT4 indicators? Most of our indicators, including the most common candle pattern indicators are Free and available for download here: MT4 Indicator Page.

Most of our candle indicators also have an alternate version which can show the signal in a separate indicator window of the chart if that is your preference.
For advanced users you can use our Pin Bar Pattern Manager (Paid) to specify your own parameters of candles you want to identify. You can find that here.

Important Information About Candlestick Patterns

Attribution:

All of the candlestick patterns that we explain on NothardTrading.com must be attributed to Steve Nison and his books on candle charting, the most famous of which was Japanese Candlestick Charting Techniques (Amazon). You can also find out more at his website here.

Interpretation Of Candle Patterns:

It is important to note that these patterns were originally identified on the daily timeframes of index charts, which is still where they are the most useful. However, this does not mean that they cannot be used for other markets or time frames.

No signal is perfect and should never be used as such. Any patterns that you identify only signals a potential move based on the fact that history repeats itself and forms regular patterns in similar situations.

But past performance is no guarantee of future results! So always treat these patterns with care and think of these guidelines when using them.

Best practice guide for trading of candle patterns:

  • No pattern is ever perfect. Be aware that patterns will form slightly differently each time and in different markets.
  • Use them as consistently as possible. Even though you will never find patterns exactly the same, you should always implement a consistent ruleset when identifying and using patterns.
  • It is never a guarantee, only an indication.
  • Make sure you are using it in the right context. For example if it is a continuation pattern then don’t use it to trade reversals!
  • Use multiple signals (confirmations) to have more confidence in your trading.

Related Candle Patterns

The opposite of this pattern is the Three Black Crows Candle Pattern which is a bearish reversal pattern when forming at the top of a trend or a range. You can read our article about it here: Three Black Crows Candle Pattern.

More About Candlestick Patterns

If you are interested in reading more about candlestick patterns you can find our articles on this topic here: https://www.nothardtrading.com/category/candle-patterns/ or choose a pattern below to read more. 

Justina Nothard

Justina Nothard

Hi, I’m Justina Nothard, a retail investor trading Stock Index Futures.

I understand how hard it can be for the ordinary trader to learn the basics and find useful tools and practical information.

This is why I decided to create Nothard Trading to help you take control of your trading.

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