Three Advancing White Soldiers A Hidden Reversal Pattern
The Three Advancing White Soldiers pattern is a bullish reversal pattern that unfolds at the end of a downtrend, and it forecast the potential end of the downward movement. The pattern is composed of three consecutive bullish candlesticks.
The Three White Soldiers have the following key characteristics:
3 consecutive bullish (green) candlesticks
Each of the candles closes progressively higher than the previous candle
Big candlestick body and small wicks
The second candle must have a bigger body than the first candle and a smaller upper wick
The three consecutive green candles show that the sellers might be exhausted. The big candle bodies and the price closing near the top of the candle's range show a change in the market sentiment.
How to Trade the Three White Soldiers
The steps to trade the 3 White Soldiers pattern:
The strong reversal can create a temporary overbought condition, leading to the price pausing and consolidating before continuing higher.
An entry can be made either when we break above the third candle high or if the reversal leads to consolidation; one might try to enter at a lower price.
The protective stop-loss order can be placed below the low of the first candle.
On Cryptohopper, the entry is automated, so you don't have to worry about watching the market endlessly to enter at the right time!
However, if you wish to buy lower, you can set up your crypto trading bot to buy at a certain percentage below the bid price. Cryptohopper thus allows you to customize the way you trade this pattern.
