What Is a Worked Example of Three White Soldiers?

What is Three White Soldiers (definition before implications)?

Three White Soldiers is a multi-candlestick chart pattern often used to describe a short sequence of strong bullish candles. In a common reading, it is characterized by three consecutive candles that are bullish (closing above opening), with relatively large bodies and closes that push higher candle by candle. The “white” wording comes from a visual style where bullish candles are typically drawn as unfilled or light-colored.

A key point for any worked example: the exact inclusion rules can vary by source. So the pattern’s identification should be treated as rule-based and checkable using explicit candle criteria you choose in advance.

How a worked example works (mechanics with stated assumptions)

Below is one worked example using simple, hypothetical OHLC data. Assumptions are listed so you can verify the result independently.

Assumptions for this example

1. We use four-digit prices for clarity.
2. A candle is “bullish” if Close > Open.
3. A candle “qualifies” as part of Three White Soldiers if:
   • its body is “large” compared to its own prior candle, defined here as BodySize ≥ 70% of the previous candle’s BodySize (this is a chosen rule for the example), and
   • it does not show a major drop in close; specifically each qualifying candle closes higher than the previous candle close.
4. No costs (spread/fees/slippage) are included because this is a concept demonstration.
5. We ignore higher-timeframe context for identification, then discuss it under limitations.

Hypothetical candle data

We start with three candidate bullish candles.

• Candle 1: Open 1.1000, High 1.1050, Low 1.0980, Close 1.1040 BodySize = 1.1040 − 1.1000 = 0.0040

• Candle 2: Open 1.1040, High 1.1080, Low 1.1020, Close 1.1070 BodySize = 1.1070 − 1.1040 = 0.0030

• Candle 3: Open 1.1070, High 1.1100, Low 1.1050, Close 1.1090 BodySize = 1.1090 − 1.1070 = 0.0020

Applying the rules step by step

1. Bullish check: Each close is above its open.
2. Rising closes:
   • Candle 2 Close (1.1070) > Candle 1 Close (1.1040)
   • Candle 3 Close (1.1090) > Candle 2 Close (1.1070)
3. Body-size threshold rule (chosen for this example):
   • For Candle 2: require Body2 ≥ 70% of Body1 → 0.0030 ≥ 0.70×0.0040 = 0.0028 ✅
   • For Candle 3: require Body3 ≥ 70% of Body2 → 0.0020 ≥ 0.70×0.0030 = 0.0021 ❌

Result of this specific worked example: Under the explicit “≥70% of previous body” rule, Candle 3 would not qualify, so the sequence would not fully meet the pattern definition as we defined it.

To show how sensitive identification is to assumptions, you can relax the body rule (for example, use “large relative to a typical candle on that timeframe” instead of a strict percentage). If Candle 3 is allowed to qualify under a softer body criterion, then the pattern would be identified as Three White Soldiers.

Evidence or example takeaway (what you can independently verify)

From the worked numbers, you can independently check:

• whether candles are bullish (Close > Open),
• whether closes advance (each close higher than the previous), and
• whether your chosen body-size rule is satisfied.

Because the example fails under one reasonable, explicitly defined body-size threshold, it demonstrates a material issue: different rule sets can produce different “pattern present / not present” outcomes, even with the same OHLC data.

Relevant limitations and risks (material failure modes)

1. Rule ambiguity: Three White Soldiers is not a single universal definition. If body-size and wick/overlap conditions are interpreted differently, identification can change. The worked example illustrates this.
2. Market context matters: Even when the candles meet strict criteria, the broader environment (such as trend state and nearby support/resistance) can influence what happens afterward.
3. Execution realism differs from chart-only logic: A chart pattern built from candle closes does not automatically incorporate trading frictions like spread, fees, or slippage.
4. Non-predictive nature: A historical pattern match does not establish forward results. The same visual structure can appear in different contexts.

Verification or next question (how to validate claims safely)

To verify independently, pick a specific, written rule set (like the one used above) and apply it to your own OHLC candles.