Three White Soldiers:

The Three White Soldiers is a three-day pattern. It is comprised of three days of white candles. Each successive candle Opens within the body of the previous White candle and Closes above the previous Close. When you have a series of three, then the Three White Soldiers pattern is complete.

The best patterns are where the Close is near the high of the day or, in other words, they have small upper wicks. Another good indicator is when the opening price is above the half way point of the previous day's White candle, such as candle three.

This pattern often happens near the bottom of a long downtrend. The bulls start to gain strength and the bears are forced to cover short sales, thereby strengthening the rally.

Remember that the Bullish Three White Candles pattern is known as a reversal pattern. In other words, it is more significant when it appears after a downtrend.

The reliability of this pattern is good but, as always, a fourth White candle would help to confirm the rally.

Japanese candlestick stock charting techniques are another technical indicators of stock market action and reaction. It should be used in conjunction with other technical indicators that are available on the Internet such as Volume, Moving Averages, Momentum, MACD, and Accumulation Distributions plots.

Many day traders and swing traders use Japanese Candlesticks as quick and easily read indicators of the current Bull and Bear status of a particular stock. There are many sites on the Internet that will give you candlestick charts of any stock code you enter. You can review them and seek out any of the hundreds of popular patterns but if you subscribe to the information offered on this site:

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