Three white soldiers

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Three white soldiers is a candlestick chart pattern in the financial markets. It unfolds across three trading sessions and suggests a strong price reversal from a bear market to a bull market. The pattern consists of three long candlesticks that trend upward like a staircase; each should open above the previous day's open, ideally in the middle price range of that previous day. Each candlestick should also close progressively upward to establish a new near-term high. [1]

Candlestick chart chart

A candlestick chart is a style of financial chart used to describe price movements of a security, derivative, or currency. Each "candlestick" typically shows one day, thus a one-month chart may show the 20 trading days as 20 "candlesticks". Shorter intervals than one day are common on computer charts, longer are possible.

Financial market generic term for all markets in which trading takes place with capital

A financial market is a market in which people trade financial securities and derivatives such as futures and options at low transaction costs. Securities include stocks and bonds, and precious metals.

Contents

The three white soldiers help to confirm that a bear market has ended and market sentiment has turned positive. In Candlestick Charting Explained, technical analyst Gregory L. Morris says "This type of price action is very bullish and should never be ignored." [2]

Market sentiment general attitude of investors to market price development

Market sentiment is the general prevailing attitude of investors as to anticipated price development in a market. This attitude is the accumulation of a variety of fundamental and technical factors, including price history, economic reports, seasonal factors, and national and world events.

This candlestick pattern has an opposite known as the Three Black Crows, which shares the same attributes in reverse.

See also

Notes

  1. "Japanese Candlesticks" . Retrieved 15 June 2010.
  2. Morris, Gregory L.; Litchfield, Ryan (2005). Candlestick Charting Explained (3rd ed.). New York, NY: McGraw-Hill. p. 126. ISBN   0-07-146154-X.

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References

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