Triple candlestick patterns: three soldiers and crows

Three soldiers candlestick pattern

The three soldiers pattern is a reversal pattern. It is also sometimes called the “three advancing soldiers” or “three white soldiers”. It is found at the end of a downtrend and it is a clear indication of a shift in the balance from the sellers to the buyers.

The three soldiers pattern forms as follows:

1. After a downtrend, there are three consecutive bullish candlesticks.
2. The bodies of the second and the third candlesticks should be of approximately the same size – if the third candlestick is visibly smaller than the preceding two candles, this means that the buyers are not completely in control and may indicate weakness among the buyers.
3. The candles have small or no upper wicks.

Three crows candlestick pattern

The three crows pattern, also referred to as the “three black crows”, is a reversal pattern found at the end of an uptrend.

The three crows pattern forms as follows:

1. It consists of three consecutive bearish candlesticks.
2. The bodies of the second and the third candlestick should be approximately the same size – if the third candlestick is visibly smaller than the preceding two candles, this means that the sellers are not completely in control and may indicate weakness among the sellers.
3. They have small or no lower wicks.

Additional considerations

The three soldiers and three crows pattern provide very strong signals, however, you should bear the following in mind:

Overextended bodies

An overextended body within the pattern might mean that the price has advanced too quickly and the market could be overbought or oversold. You should take care when considering a trade based on this.

Caution with wicks

Do not seek perfect Marubozu candlesticks (a candlestick that only has a body and no wicks) within these patterns as they rarely occur. However, if the wick of any of the candlesticks forming the pattern (especially the second and the third candles) is equal or longer than one of the bodies, then caution is advised when perceiving it as a three soldiers or three crows pattern.