The Three White Soldiers And The Morning Star Three Stick Trend Reversal Candlestick Patterns

Three stick candlestick patterns are more complicated than the single stick and two stick patterns. These patterns take three days to emerge as a valid signal. One such three stick candlestick trend reversal patterns is the Morning Star. However, a Morning Star and the Bullish Doji Star look almost the same but are in fact two different three stick candlestick patterns. You need to know how to distinguish between them.

In case of the Morning Star and the Bullish Doji Star Patterns, the first day is a large bearish candle, the second day in case of the Doji Star Pattern is a True Doji while in case of the Morning Star it is almost a Doji. The price action behind these two patterns is almost the same.

The first day bearish candle indicates the bears in full control of the market. The second day starts with a gap. This indicates that bears are still in control, But soon the bull start trying to push the prices up. There is a fierce contest between the bulls and the bears throughout the day. As a result, the open and the close prices are almost the same on the second day as neither the bulls nor the bears could win on that day. The third day, the bulls finally overcome the bears and start pushing the prices up resulting in a bullish candle.

The other important bullish trend reversal three stick candlestick pattern is the Three White Soldiers Pattern. This pattern includes three bullish candles in a row. When you spot this pattern in a downtrend, it means a quick trend reversal.

The low, high and the open and close on the second day should be higher than that on the first day. In the same manner, the low, high, open and close on the third day should be higher than that on the second day for a true Three White Soldiers patterns to form on the charts.

The price action that forms this pattern is often dramatic and indicates a quick trend reversal. The appearance of this patterns means that the bulls have been in total control of the market for three consecutive day. The Three White Soldiers is considered to be a pretty strong trend reversal pattern. It is always a good strategy to put the stop at the low of the Three White Soldiers pattern second day. This way, if there is some retracement after the new uptrend, you don't get out of the trade soon.


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Mr. Ahmad Hassam has done Masters from Harvard University. Get this 82 page PDF Candlestick Patterns Guide FREE. Watch these shocking Forex Trader PRO videos that shows a total blockhead making 10 out of 10 winning trades!