The three white soldiers candlestick pattern is an extremely bullish candlestick pattern that often ignites a new uptrend in a stock that was in a downtrend.
The picture above shows how the three white soldiers candlestick pattern looks like. After a period of downtrend or correction in the stock, the stock suddenly forms a large bullish candle which is followed by another 2 bullish candles that closes higher than the previous candles. Usually this kind of reversal happens at strong support areas where traders or investor will step in to buy the stock.
The daily chart of KMX above shows the appearance of the three white soldiers candlestick pattern after a period of downtrend. The candlestick pattern help end the downtrend and ignited a new uptrend in the stock.
As I said, the pattern often appears at weekly long term support. The above chart is the weekly chart of KMX. The three white soldiers pattern in the daily chart appeared at the weekly uptrendline support. When two time frames are in sync the stock reverses and go higher.
Aug 17, 18 05:07 AM
In this lesson we will take a look at the technical developments of OKA Corp's stock price and why it moved the way it did. We will also have a look at what might happen to OKA's stock price.
Aug 16, 18 07:28 AM
In this lesson, we will learn how and why BMY manage to bottom out and start a new uptrend.
Aug 14, 18 08:19 AM
In this lesson we will learn and examine why Pentamaster was able to recover all of its losses to start a new uptrend and achieve new highs.
Aug 13, 18 05:56 AM
The KLCI is currently at resistance territory after a nice big rally. I would consider a sideways trading a possible scenario at the moment.
Aug 13, 18 05:22 AM
In this lesson, we will learn how AAPL's 15 Min stock chart formation help to send the stock higher for 2-3 days to give traders a nice swing trading opportunity.