Three white soldiers and three black crows

What it is

Three white soldiers are three long bullish candles in a row, each opening within or near the previous candle's body and closing near its high, usually after a decline. They show buyers taking control steadily. Three black crows are the bearish mirror after a rise.

Steve Nison's 1991 book Japanese Candlestick Charting Techniques brought these and most other candlestick patterns to Western traders.

How to spot it

• Three similar-sized candles of the same colour.
• Small wicks at the closing end of each.
• Best after a clear move the other way.

How to use it

• Treat it as a sign the move has changed direction, and look for an entry on the first pullback rather than at the third candle's close.
• Stop below the first soldier (or above the first crow).

Common mistakes

• Buying at the top of the third candle, far from any sensible stop.
• Counting three small candles in a range as soldiers.

Related