Ranking Every Candlestick Pattern 1 out of 10 (Part 1): 3 White Soilders Candlestick Pattern
Published: 2022-07-02
Status:
Available
|
Analyzed
Published: 2022-07-02
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
The Three White Soldiers candlestick pattern is a bullish signal used to identify potential reversals from a downtrend, indicating that price is likely to move higher. It consists of three consecutive large green candles.
"The three white soldiers candlestick pattern is a bullish pattern meant to capture reversals but oddly enough what we're supposed to wait on with this candlestick pattern is price to be pushing down and then we're waiting for three very large green candles before we place a trade"
Pending
A trading strategy using the Three White Soldiers pattern involves waiting for the RSI indicator to enter oversold territory, followed by the appearance of the Three White Soldiers candlestick pattern.
"we're looking for the rsi indicator to go in an oversold territory we're then going to look for our candlestick pattern a swing low followed by three consecutive close above the previous high candles in other words we're looking for the rsi to go oversold and then looking for the three white soldiers candlestick pattern"
Pending
The Three White Soldiers candlestick pattern, when tested on the EUR/USD 4-hour chart over five years (June 29, 2017, to June 29, 2022) using an RSI(8) oversold strategy, achieved a 70% win rate, earning an accuracy score of 10 out of 10.
"accuracy-wise i'm giving it a 10. anything above 65 accurate is getting a 10 in my book for sure"
Pending
The frequency of the Three White Soldiers candlestick pattern, when tested on the EUR/USD 4-hour chart over five years with the RSI(8) oversold strategy, was low, resulting in only 23 trades, hence a frequency score of 3 out of 10.
"frequency on this one i'm gonna give it a three"
Pending
The reward to risk potential for the Three White Soldiers candlestick pattern, tested on the EUR/USD 4-hour chart with a 1:1 risk-reward ratio, was considered low, resulting in a score of 2 out of 10, largely due to the need for three large candles before entry, which can necessitate a wider stop loss.
"reward to risk potential i would definitely say this has towards the bottom end so i'm gonna give it a two on the reward to risk potential here for the three white soldiers candlestick pattern"
Pending
The Three White Soldiers candlestick pattern received an overall rating of 5 out of 10 based on its performance on the EUR/USD 4-hour chart over five years, averaging its accuracy, frequency, and reward-to-risk scores.
"we've essentially got 15 divided by 3 which is going to give us a 5. so as for the three white soldiers candlestick pattern it's getting a 5 out of 10 rating"
Pending
When applied to day trading on a 30-minute timeframe, the Three White Soldiers candlestick pattern shows a significant increase in frequency, suggesting a score of 6 or 7 out of 10 for frequency.
"the frequency on a day trading time frame closer to like a six or a seven with me being able to get this many trades"
Pending
For day traders, the Three White Soldiers candlestick pattern is considered to be more like a 7 out of 10, indicating its improved potential compared to its swing trading application.
"this candlestick becomes more like a seven than a five so it puts it up there on the scale a little bit higher if you are a day trader"
Pending
The Three Black Crows is the bearish counterpart to the Three White Soldiers pattern. It's identified by a swing high after an uptrend, followed by three consecutive candles closing below each other.
"the opposite of this if you want to look it up yourself is called three black crows and that is literally just the inversion of what i just taught you it's just the bearish version of it you would be looking for a swing high after price has moved up and then you'd be looking for three consistent candles that close below each other after that swing high that would be three black grows"
Pending
Trading both the Three White Soldiers and Three Black Crows patterns in both directions on day trading timeframes (e.g., 30-minute and lower) could result in over 100 trades within a two-year period.
"if you traded this in both directions you would probably get well over a hundred trades over the course of two years on day trading time frames"
Pending
The combined strategy of trading both Three White Soldiers and Three Black Crows patterns demonstrated a 75% win rate in testing, although this was based on a limited sample size.
"this thing's getting a 75 win rate from my testing again a small sample size but still that is very impressive"
Pending