Bullish Three White Soldiers Pattern
BULLISH THREE WHITE SOLDIERS PATTERN (BTWSP)
market has stayed at a low price for too long
1.Market is on a downtrend;
2.We see 3 consecutive long white sticks;
3.Each stick closes at a new high;
4.Opening of each of the sticks is within the body of the prior day; and
5.Each consecutive day closes near or at its highs
The BTWSP appears in a situation where the market stays at a low price for too long. The market is still falling down and it is very close to the bottom (or is actually at the bottom). There is then an attempt upward as indicated by the long white stick. The next two days experience higher closes. The bears have no choice but to cover their short positions.
1.The pattern indicates a strong reversal in the market
2.If the white sticks are so extended, there might be an overbought market
3.The BTWSP is highly reliable, but a confirmation is still suggested (through a white stick with a higher close or a gap-up).