Investor Glossary-three white soldiersInvestor Glossary-three white soldiersInvestor Glossary-three white soldiersInvestor Glossary-three white soldiersInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Three White Soldiers

The HTML to link to this page
 

In technical analysis, three white soldiers is a candlestick charting pattern -- it is a bullish reversal pattern. The three white soldiers is characterized by three long-bodied candles that occur on consecutive trading days. With a three white soldiers pattern, each day's opening price occurs within the body of the previous day's candle and each day's closing price occurs at or near that day's high. Some market technicians believe an optimal three white soldiers pattern will have the second and third "soldiers" opening in the top half of the preceding day's "soldier." However, the three white soldiers pattern is theoretically valid if the 2nd and 3rd day opening prices occur anywhere within the body of the previous candle. Technical analysts consider the three white soldiers a very bullish indicator when they appear after a long decline or after a long decline and subsequent period of consolidation. Three white soldiers appearing after a long advance is regarded more cautiously because it could signal a security is near its top and is about to reverse. The three white soldiers pattern does not appear frequently.



Rate this Three White Soldiers definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: reverse mortgage, current ratio, phantom income, APR, limit order, class C shares, labor relations, diluted share, covered put, dividends payable, debt service coverage, option premium, per diem, irrevocable trust, stock split, inflation, cancelled check, risk management, required rate of return, 1035 exchange, FICO score, 144a, minority interest, Key Rate Duration, average price per share, deferred revenue, liquidity ratio, command economy, annual return, LIBOR, quality assurance, VIX, ex-dividend, ex-dividend date, open position, in escrow, wholly-owned subsidiary, EBITDA, implied volatility, retained earnings, balance sheet, deferred tax, margin rate, 1031 exchange, Zero Cost Collar, FTSE, stock market close, 401a, real GDP


Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
Investor Glossary Index >>> # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
©2004-2014 Investor Glossary - All rights reserved - Terms of Use