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‘Three Candlestick’ patterns

In this session we will be discussing about Three candlestick type i.e
Three White Soldiers and Three Black Crows
Moneycontrol Contributor@moneycontrolcom

Chandan Taparia
Three White Soldiers are trend reversal patterns. It usually indicates a weakness in an
established downtrend and the potential emergence of an uptrend, while The Three
Black Crows pattern is a bearish reversal pattern that consists of three bearish
candlesticks that are dark in color.

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This is a moderate trend reversal pattern that should only come into consideration
when it appears in a rally or an established uptrend

1. Three White Soldiers (Bullish Pattern):

Chandan Taparia
Derivative & Technical Analyst|Motilal Oswal Securities
 Nifty could head towards 9,800 if it trades below 10,138 levels: Motilal Oswal
Securities
 Expect roller coaster ride in expiry week with limited upside: Chandan Taparia
 Technical Classroom: How to read Bullish Harami and Bearish Harami patterns

Three white soldiers is a bullish candlestick pattern that predicts the reversal of a
downtrend. The pattern consists of three consecutive long-bodied candlesticks that
open within the previous candle's real body and a close that exceeds the previous
candle's high.

Each of the three candlesticks should close on or near the high price for the period and
with each candlestick making steady advances in price. Each candlestick should not
have long upper shadows or wicks and should preferably open within the real body of
the preceding candlestick in the pattern.

When this pattern appears in a downtrend, it indicates the potential emergence of

strength and a possible trend reversal.

2. Three Black Crows ( Bearish Pattern) :

Three black crows is a bearish candlestick pattern that is used to predict the reversal
of the current uptrend. This pattern consists of three consecutive long-bodied
candlesticks that have opened within the real body of the previous candle and closed
lower than the previous candle.

Each successive candlestick should mark a steady decline in price and should not have
long lower shadows or wicks. Preferably, each of the three candlesticks should open
within the real body of the preceding candlestick in the pattern but this is not essential.

When this pattern appears in an uptrend, it indicates the potential weakening of the
trend and a possible trend reversal.