Soldiers and crows

This pattern involves three candles. If they occur at the bottom of a trend, it is called three white soldiers. If it happens at the top of a trend it is called three black soldiers or three black crows.

Three white soldiers

In the example below, the shorters have been in a long run of small attacks causing the price to go down. At the bottom of the trend, the longers get piss and launch three large consecutive atacks.

The expected results is for the longers to win and the price to reverse and start to go up.

Figure 5.6: Three white soldiers

Three Black Crows

In the opposite, the longers are in series of small anemic attacks (Evidenced by the small size of their green candles, yet the price is going up).

At the peak of the upward trend, the shorters launch three consecutive attacks (Three black soldiers or Crows).

The size of the attacking candles barely overlaps suggesting massive consequences in the motivation of the longers.

Eventually, longers loose, and prices go down.

According to Bulkowski, this pattern predicts lower prices with a 78% accuracy rate.

Figure 5.7: Three black soldiers

Here is an example:

Figure 5.8: Three Black Crows

Worth nothing that the attacks may at times fail, so it is always good to wait for confirmation by checking the direction of a few candles after the three attacks.

Figure 5.9: Three Black Crows fails