The Three White Soldiers and Three Black Crows strategy is a powerful multi-candle reversal method used to identify strong shifts in market sentiment. These formations are most effective when they appear at the end of a trend, signalling a potential reversal with strong conviction from buyers or sellers. When used with technical confluence and proper confirmation, they offer some of the highest probability reversal setups in price action trading.

This article explains how to identify and trade the Three White Soldiers and Three Black Crows patterns with precision and discipline.

What Are Three White Soldiers and Three Black Crows?

Three White Soldiers

• Bullish reversal pattern
• Appears after a downtrend
• Consists of three consecutive bullish candles
• Each candle opens within or near the previous body and closes higher
• Signifies strong buying pressure and trend reversal

Three Black Crows

• Bearish reversal pattern
• Appears after an uptrend
• Consists of three consecutive bearish candles
• Each candle opens within or near the previous body and closes lower
• Reflects heavy selling pressure and a potential downside move

These patterns indicate that momentum has shifted from one side of the market to the other, often driven by institutional order flow.

Why These Patterns Are Important

These formations represent more than just a candlestick pattern—they signal a sustained shift in sentiment. Unlike single-candle signals, they span three sessions and therefore offer higher reliability.

Key reasons why they work:

• They confirm the presence of strong directional momentum
• They allow better validation of trend reversals
• They provide entry timing, clear invalidation levels, and trend initiation points

How to Trade the Strategy Effectively

To capitalise on this strategy, it must be combined with context, confirmation, and risk management.

1. Confirm Valid Pattern Structure

Three White Soldiers

• Appears after a downtrend or consolidation
• Each candle is bullish and progressively closes higher
• Candles should be of decent size with small or no wicks
• Ideally, each candle opens within the body of the previous candle

Three Black Crows

• Appears after an uptrend or at a market peak
• Each candle is bearish with lower closes
• Should have small upper wicks, showing sustained selling pressure

Avoid setups where the candles have long wicks in both directions or lack momentum.

2. Check Market Context

These patterns are strongest when they appear at:

• Major support or resistance
• Trendlines, channels, or moving average zones
• Fibonacci retracement levels
• Round numbers or psychological price zones

Do not trade these patterns in the middle of a ranging market or with no clear trend behind them.

3. Confirm with Indicators and Tools

For stronger confirmation, consider:

• RSI divergence: Shows the original trend is weakening
• MACD crossover: Confirms shift in momentum
• Volume spike: Validates institutional interest
• Break of structure: Check if the pattern leads to a swing high/low being broken

4. Plan Entry, Stop-Loss, and Take-Profit

Entry Options

• Enter at the open of the candle following the third soldier/crow
• Conservative traders can wait for a retest of the third candle’s midpoint or a break of the high/low

Stop-Loss Placement

• For Three White Soldiers: Below the low of the first bullish candle
• For Three Black Crows: Above the high of the first bearish candle

Take-Profit Targets

• Previous swing highs/lows
• Fibonacci extensions (127.2%, 161.8%)
• Risk-reward ratio of at least 2:1

5. Best Timeframes and Markets

Timeframes

• 1H, 4H, Daily, Weekly
• Avoid 1-minute or 5-minute charts due to excessive noise

Markets

• Forex majors
• Stocks and indices
• Commodities (gold, oil)
• Cryptocurrencies

The strategy is highly effective in markets with trending behaviour and reliable technical levels.

Summary Table

Pattern	Trend Context	Structure	Signal	Stop-Loss	Target
Three White Soldiers	Downtrend	3 strong bullish candles	Bullish reversal	Below first candle low	Swing highs / Fibonacci levels
Three Black Crows	Uptrend	3 strong bearish candles	Bearish reversal	Above first candle high	Swing lows / Fibonacci levels

Conclusion: Mastering the Three Soldiers & Crows Strategy

The Three White Soldiers and Three Black Crows strategy is one of the most dependable reversal methods in candlestick trading. Its strength lies in the sustained conviction shown over multiple candles, providing more reliable signals than single-candle patterns. When combined with technical levels, momentum indicators, and a solid risk framework, this pattern offers consistent edge across all market conditions.

To refine your skills with candlestick reversal techniques and integrate them into a complete trading plan, enrol in our expert-led Trading Courses at Traders MBA and start trading like a pro across all markets.