1 Three white soldiers candle pattern - bullish pattern

The three white soldiers candle pattern consists of three long candles with long bodies that follow a downward trend, indicating a long-term trend reversal upward.

To be a valid pattern:

The body of the second candle must be longer than the body of the first candle, and its closing price should be near its peak with a small or no upper wick.

The body of the third candle must be the same size or larger than the body of the second candle, and the closing price of the third candle should be at or near the highest price level with a small or no wick.

Technical traders use the three white soldiers candle pattern as one of the clearest patterns indicating the end of bearish markets.

2 Three black crows candle pattern - bearish pattern

The opposite of the above-mentioned three white soldiers candle pattern. This three black crows candle pattern consists of three long-bodied bearish candles that follow an upward trend, indicating a long-term trend reversal downward.

To be a valid pattern:

The body of the second candle must be longer than the first, and it should close near its bottom with a small or no wick.

The body of the third candle must be the same size as or larger than the second candle, and the closing price of the third candle should be at or near the lowest price level with a small or no wick.

A technical trader may use the three black crows candle pattern as an opportunity to open a sell position with the aim of profiting from the subsequent downward trend.

3 Three rising or falling candle patterns

Three rising or falling candle patterns are used to predict the continuation of the current trend, whether the trend is bearish or bullish.

The bearish pattern is called the "three rising candle pattern." The bearish pattern consists of a long red candle, followed by three small green candles, and another red body - the green candles are all contained within the range of the bearish bodies. It shows traders that the bulls do not have enough strength to reverse the trend.

The reverse is true for the bullish pattern called the "three falling candle pattern." It consists of three short red candles that fall within the range of two long green candles. The pattern shows traders that despite some selling pressure, buyers maintain control of the market.