| In this article we are going to discuss one of the | | | | candle is formed. The second candle will form by |
| more formidable chart patterns that has the power | | | | opening within the body of the first candle and |
| to force grouchy bears to cover their short positions | | | | closing a step above the previous candle as bulls pour |
| and look for honey elsewhere. This formation is | | | | on the pressure. The third day will mirror the second |
| known as three white soldiers, easily identified by | | | | day as the third candle opens within the real body of |
| three white candles, each closing above the previous | | | | the second white candle, also closing a step above |
| candle. Although a powerful chart pattern, bulls should | | | | the previous second candle, again as bulls continue to |
| not get too caught up in this reversal of fortune. | | | | apply pressure. |
| Although this chart pattern possesses the power to | | | | At this point the bears will capitulate and cover their |
| force bears to cover their short positions, bulls should | | | | short positions, lick their wounds and move on to |
| be wary as the market can quickly become | | | | greener pastures. It should be noted, although the |
| over-bought and extended. | | | | reversal and uptrend is confirmed, the appearance of |
| The three white soldiers usually make their | | | | overly extended white candles in this formation can |
| appearance on a candlestick chart after an extended | | | | cause the uptrend to exhaust itself and pull back for |
| downtrend in the market and the market is nearing a | | | | a breather. Entering a position late on the third day |
| bottom or has reached a bottom. At this point a | | | | may not be a wise choice for an over-zealous bull |
| strong rally is confirmed when the first long white | | | | caught up in the euphoria of the reversal. |