Three white soldiers and three black crows

Three White Soldiers

The “Three White Soldiers” pattern is three green candles with a gradually rising price. If the pattern is formed after a correction or consolidation, it often signals a rising market.

Formation Conditions

• Each new candle opens close to the previous one’s closing price.
• Each candle closes at or near the high.
• The pattern most often appears at the bottom of a trend, after a corrective decline.

How to avoid false signals

1. Set up the bot after breaking resistance on the chart.

2. Watch for a small red candle on the daily timeframe (1D) to appear after 2-3 days of growth.

3. If the next 1-day candle opens below the previous close but closes a lot higher, the pattern is confirmed.

Note

Not every occurrence of three consecutive green candles without shadows is a strong bullish signal. It’s important to consider the context — the formation location and price volatility.

If the pattern occurs at a market peak rather than a market bottom, the likelihood of further growth decreases.

When the second candle is significantly larger than the others and the third is smaller, the market may be losing momentum, and the move will not receive buying support.

Three Black Crows

The “Three Black Crows” pattern is a signal of a possible reversal toward a downtrend. The pattern consists of three large red candles arranged in a downward stair-step pattern with no distinct shadows.

How to interpret

The pattern appears after an uptrend and indicates weakening buyers and the beginning of a bearish phase. Each new candle closes below the previous one, demonstrating a gradual buildup of selling pressure.

How to avoid false signals

1. Set the bot to target a local uptrend if it’s forming during a downtrend.

2. Watch for three long red candles in a row – this is a possible entry signal.

3. Confirm the signal with volume and price movement at key support levels.

Note

The “Three Black Crows” pattern often misleads traders. Three consecutive down closes alone do not guarantee a reversal.

Market context is more important than candle shape:

• If the market is still in a bullish phase, it’s not worth trading against the trend.
• In this case, this pattern can even be interpreted as a bullish signal, indicating a buying opportunity after a local correction.

Application in Veles (Standard Indicator)

Available settings:

• Interval - candles timeframe.
• Method - calculation type. By bar close (only on the selected interval) or by minute (once per minute for any interval).
• Direct or reverse signal logic.

Application in Veles (Flexible Indicator)

Available settings:

• Interval - candlestick timeframe.
• Method - calculation type. By bar close (once per selected interval) or by minute (once per minute for any interval).
• Shift - shifts the requested indicator value back by the specified number of candlesticks.
• Direction - Buy or Sell. Here, you can select forward or reverse logic for the filter.