3 White Soldiers & 3 Black Crows

Continuation Candlestick Patterns

In contrast to reverse candlestick patterns, continuation candlestick patterns indicate the strength of the current market trend, and they might hint towards a possible continuation of a given trend. When learning about these patterns, please keep in mind that most of these patterns require a concrete confirmation in the form of a subsequent candlestick.

The most popular and widely recognized continuation candlestick patterns are: 

• Marubozu
• Three White Soldiers & Three Black Crows 
• Three-Line Strike
• Falling Three Methods & Rising Three Methods
• Mat Hold
• Upside & Downside Tasuki Gap

Today, we will be discussing the three white soldier & the three black crows – one of the market patterns you will be seeing rather often. 

‍Three White Soldiers & Three Black Crows

These candlestick patterns are among the most recognizable and famous patterns. They’re called “white” soldiers and “black” crows because when the patterns were originally named, the bullish candles were typically represented by a white color, while the bearish candles were typically represented by a black color (as opposed to the green and red we mostly see today). Apart from their color, however, nothing else has changed, so let’s explain how you can spot these patterns: 

A) Three White Soldiers

You can recognize this market pattern by noticing the following features/criteria: 

• All three candlesticks are bullish, and they all resemble one another (longer bodies with minimal shadows)
• The lower the shadows, the higher the chances that the current trend will continue, as a result of the buyers’ dominance. 
• Each subsequent candlestick is closed higher than the previous one. 
• Each subsequent candlestick is opened lower than the spot where the previous one was closed (this is not an exclusive rule, however). 

B) Three Black Crows

You can recognize this market pattern by noticing the following features/criteria: 

• All three candlesticks are bearish, and they all resemble one another (longer bodies with a minimal shadow)
• The lower the shadows, the higher the chances that the current trend will continue, as a result of the sellers’ dominance. 
• Each candlestick is closed lower than the previous one. 
• Each candlestick is opened higher than the spot where the previous one had been closed (this is not an exclusive rule, however).

‍C)The Stalled Pattern

Though this pattern does not closely resemble the previous two, it is still considered a part of the Three White Soldiers & Three Black Crows family. 

The Stalled Pattern is differentiated by a smaller third candle with much larger shadows. This signifies a weakening market trend and may indicate a reversal of the current trend. So, you might be asking yourselves – why is this not considered a reverse candlestick pattern, then? 

The tricky thing is that this pattern might also indicate that the current market trend is continuing. It all heavily depends on the fourth candle that comes after the original pattern, which will either confirm a continuation or a reversal. So, if you wish to utilize this pattern, it is essential that you wait for confirmation from the fourth candlestick. 

As you already know from previous articles, if there’s a gap between the second and third candles and the fourth candle closes in the direction of a new trend, then either a morning or evening star will be created, and you already know how to interpret that kind of market pattern.  

So, in conclusion, be wary of making rash decisions based solely on the stalled pattern, but do keep it in mind, especially if it is confirmed/refuted by a fourth candlestick. 

‍An example of three white soldiers and three black crows in realistic market scenarios:

We hope this Charting The Markets article has provided some insight into these common market patterns and will help you recognize, utilize, and capitalize on the three white soldiers & three black crows when you see them out in the wild. Stay tuned for the next addition of Charting The Markets, where we’ll discuss the three-line strike.