Strategy Three White Soldiers Three Black Crows Forex Trading Strategy

[mk4tx]

I want to cover a Forex trading strategy that is based on 2 candlestick chart patterns and they are called:

1. The Three White Soldiers Candlestick Pattern
2. Three Black Crows Candlestick Pattern

Both of these candlestick chart patterns work in combination with each other and for the sake of simplicity, let’s just call it the “3 white soldiers and 3 black crows trading strategy“.

First, let’s look at these chart patterns in detail.

THREE WHITE SOLDIERS CHART PATTERN
The three white soldiers pattern is a bullish reversal candlestick pattern and it consists of 3 bullish candlesticks and this is how it is formed:

• The market has to be in a downtrend.
• You then have 3 green bullish candlesticks that form consecutively giving you the three white soldiers chart pattern.
• Each candlestick must open within the candle body of the previous candlestick
• Each candlestick must close higher than the previous candlestick

When you see the three white soldiers pattern formed in a downtrend, you should at least take notice because it is a potential signal that a trend change may be happening.

One thing you want to see is that these candlesticks scream “bullish” when you look at them. We want to see long candle bodies which indicates either many new buyers entering the markets or those traders that are short, are taking Profit .


THREE BLACK CROWS CHART PATTERN
The 3 black crows chart pattern will be exactly opposite to the three white soldiers chart pattern shown on the chart above.

The three black crows pattern is a bearish reversal candlestick chart pattern that consists of 3 bearish candlesticks.

Here is how the three black crows chart pattern forms:

• The market has to be in a uptrend.
• You then have 3 bearish candlesticks form consecutively giving you the three black crows chart pattern.
• Each candlestick must open within the candle body of the previous candlestick
• Each candlestick must close lower than the previous candlestick

If you see the three black crows chart pattern form in an uptrend market, you should take notice as this is a potential signal that a trend change is on the horizon.




Trading 3 Black Crows and 3 White Soldiers
The benefit of this trading strategy is that no indicators need to be used. We are looking at pure price action and allowing the movement of price to dictate how we are going to trade.

• Time Frame – As with any chart pattern trading strategy, they tend to work better on the higher time frames however you could use these intra-day.
• Currency Pairs – Any currency pair that is currently trending is a good candidate for one of these reversal patterns.
• Indicators – Nothing but pure price action so no trading indicators are needed.

Trading Rules

1. If a three white solider pattern is formed, place a buy stop order 3-5 pips above the high of the 3rd candlestick OR if a three black crows chart pattern form, place a sell stop order 3-5 pips below the low of the 3rd candlestick.
2. Place your stop loss above the 3rd candlestick’s high if you placed a sell stop order or place a stop loss below the 3rd candlestick’s low if you entered a buy stop order.
3. Take profits may be placed targeting previous swing highs or lows (peaks or bottoms).
4. Move stop loss to break even when price moves by the amount risked or move stop loss to break even when price has made a swing high or swing low.
5. Learn to take partial profits off the table when price moves at least halfway point to reach your take profit target level.

 

[fikryn]

One of the best strategy but as usual, practice makes perfect.

 

[hunter2rocky]

Thank you, get any information or trading strategies is better than just hoping.. learn everyday!!

 

[tinooo]

Thank you so much for the strategy am gonna test this to know how effective this is

 

[Fredericks]

Thanks for taking the time to lay this on a plate. I hope to learn and master it. Looks pretty straightforward and easy to wrap ones head around.

 

[Rameshvviet]

thanks for the strategy very helpful to new traders .

 

[avalsss]

Tell us how the success in trading this system is worth it to trade .

 

[pbrewman]

I want to cover a Forex trading strategy that is based on 2 candlestick chart patterns and they are called:

1. The Three White Soldiers Candlestick Pattern
2. Three Black Crows Candlestick Pattern

Both of these candlestick chart patterns work in combination with each other and for the sake of simplicity, let’s just call it the “3 white soldiers and 3 black crows trading strategy“.

First, let’s look at these chart patterns in detail.

THREE WHITE SOLDIERS CHART PATTERN
The three white soldiers pattern is a bullish reversal candlestick pattern and it consists of 3 bullish candlesticks and this is how it is formed:

• The market has to be in a downtrend.
• You then have 3 green bullish candlesticks that form consecutively giving you the three white soldiers chart pattern.
• Each candlestick must open within the candle body of the previous candlestick
• Each candlestick must close higher than the previous candlestick

When you see the three white soldiers pattern formed in a downtrend, you should at least take notice because it is a potential signal that a trend change may be happening.

One thing you want to see is that these candlesticks scream “bullish” when you look at them. We want to see long candle bodies which indicates either many new buyers entering the markets or those traders that are short, are taking Profit .

View attachment 3812
THREE BLACK CROWS CHART PATTERN
The 3 black crows chart pattern will be exactly opposite to the three white soldiers chart pattern shown on the chart above.

The three black crows pattern is a bearish reversal candlestick chart pattern that consists of 3 bearish candlesticks.

Here is how the three black crows chart pattern forms:

• The market has to be in a uptrend.
• You then have 3 bearish candlesticks form consecutively giving you the three black crows chart pattern.
• Each candlestick must open within the candle body of the previous candlestick
• Each candlestick must close lower than the previous candlestick

If you see the three black crows chart pattern form in an uptrend market, you should take notice as this is a potential signal that a trend change is on the horizon.


View attachment 3813

Trading 3 Black Crows and 3 White Soldiers
The benefit of this trading strategy is that no indicators need to be used. We are looking at pure price action and allowing the movement of price to dictate how we are going to trade.

• Time Frame – As with any chart pattern trading strategy, they tend to work better on the higher time frames however you could use these intra-day.
• Currency Pairs – Any currency pair that is currently trending is a good candidate for one of these reversal patterns.
• Indicators – Nothing but pure price action so no trading indicators are needed.

Trading Rules

1. If a three white solider pattern is formed, place a buy stop order 3-5 pips above the high of the 3rd candlestick OR if a three black crows chart pattern form, place a sell stop order 3-5 pips below the low of the 3rd candlestick.
2. Place your stop loss above the 3rd candlestick’s high if you placed a sell stop order or place a stop loss below the 3rd candlestick’s low if you entered a buy stop order.
3. Take profits may be placed targeting previous swing highs or lows (peaks or bottoms).
4. Move stop loss to break even when price moves by the amount risked or move stop loss to break even when price has made a swing high or swing low.
5. Learn to take partial profits off the table when price moves at least halfway point to reach your take profit target level.

Hi, sorry I am new, where can I find this kind of strategy explanations to learn more of the subject? cheers!

 

[farren]

extremely helpful for new beginners like me. thanks