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

Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use