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.
Jan 08, 19 05:35 AM
Is the market ready for a fresh new start for 2019 and will this be a recovery and start of a new rally. Let's take a look at the charts.
Dec 03, 18 08:16 AM
With an agreement to pause the trade war, Dow is about to jump 450 points higher, but will this rally sustain and go even higher? Lets take a look at the charts.
Nov 29, 18 07:51 AM
Yesterday we saw a huge big rally 600 ++ points. The question now is this rally sustainable and will we have a beautiful Christmas in the stock market this year. Here are a few things to look out for…
Nov 29, 18 07:35 AM
This sideways movement in the KLCI is really giving investors and traders a headache. What we are experiencing now is a volatility contraction which is often followed by volatility expansion.
Nov 26, 18 08:52 AM
As the techs reach an area of long term support, its going to be a choppy ride as the market decides whether support will hold or the downtrend continues...