Three White Soldiers and Three Black Crows – Veles Help Center

Three White Soldiers and Three Black Crows

The Three White Soldiers pattern represents three green candles with a gradually rising price. If the pattern is formed after a correction or consolidation, it may indicate market growth. The condition of the pattern is that each candlestick is opened close to the previous candlestick’s close and is closed at or near the high.

The Three White Soldiers pattern represents three green candles with a gradually rising price. If the pattern is formed after a correction or consolidation, it may indicate market growth. The condition of the pattern is that each candlestick is opened close to the previous candlestick’s close and is closed at or near the high.

How to avoid false signals?

  1. Set up a bot after breaking the resistance on the chart.
  2. In case of an asset price pullback on the 2nd or 3rd day after a strong price growth and closing of a small red candle on the 1D TF; if a new daily candle starts below the previous close but ends with a strong growth.

Remark

Not every time when three green candles without shadows appear in a row, it means a strong bullish signal. It is important to consider the location of the pattern formation and the volatility of the individual candles.

If the pattern is not formed at the bottom of the market, but at high prices, strong growth may not occur.

If the second candle is larger in size than the others and the last candle is smaller, this may signal a loss of market strength. Further movement may not get enough support from buyers.

Three Black Crows

The Three Black Crows pattern is a reversal signal for a bearish trend. The formation consists of three large red candles arranged in a staircase without significant shadows.

This reversal signal should be considered only if there is an uptrend. Three black crows usually indicate a weakening of the current uptrend and the possible formation of a downtrend.

How to avoid false signals?

To identify the Three Black Crows pattern, look for the following criteria:

  1. Set up a bot for a locally uptrend in a falling market.
  2. The bot will enter the deal after three long red candles appear.

Remark

The Three Black Crows pattern often misleads traders.

If the market closes sequentially 3 sessions in a row, does not mean that the uptrend will reverse. Because the context of the market is more important than any candle patterns you encounter.

If the market is in a bullish phase, you should not trade against the trend and bet on a reversal. In this case, you can consider the Three Black Crows pattern as a bullish signal indicating a buy.

The patterns are available in Bot Start Filters.

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