The Three Advancing White Soldiers candlestick pattern, which is sometimes referred to simply as the Three White Soldiers, is a moderate trend reversal pattern that is quite similar to the Advance Block and the Stalled pattern. All three patterns are moderate reversal patterns that indicate a weakening of the existing trend. While the Advance Block and Stalled patterns appear in an existing uptrend, the Three Advancing White Soldiers pattern must appear in an established downtrend where it usually indicates a weakening of the downtrend, and the potential emergence of an uptrend.
The Three Advancing White Soldiers pattern is also the opposite of the Three Black Crows candlestick pattern. It is called the Three Advancing White Soldiers pattern because it consists of three relatively long bullish (hence advancing) candlesticks that are light in color. Each of the three candlesticks should close on or near the high price for the period and each candlestick must mark a steady advance in price movement. 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, though the latter is not essential. When this pattern appears in a downtrend, it indicates the potential emergence of strength of buyers and a possible bullish trend reversal. However, if the three candlesticks are over extended and make significant advances you may need to be cautious of potential overbought conditions.