Candlestick patterns are one of the most reliable ways to read market sentiment. They provide traders with a clear picture of buying and selling pressure within a short span of time.
Among the many patterns, White Soldiers and Shooting Stars are two of the most important signals to understand. Learning how to spot these can help you identify potential reversals and strengthen your decision-making in trading.
In this article, we will explore what they mean and how to use them effectively.
What Are Three White Soldiers?
The three white soldiers pattern is a reliable bullish signal that usually appears after a market decline. It is made up of three long green candles, each one opening inside the body of the candle before it and closing close to its top.
This steady upward move shows increasing buying pressure and rising confidence among traders.
Many see it as an early sign of trend reversal, especially when stronger volume is present, but confirmation from other tools is always wise.
What Is a Shooting Star?
A shooting star pattern is a candlestick signal that often points to a possible bearish reversal after a strong rally.
It forms with a small body near the low of the session and a long upper shadow, showing buyers tried to push prices higher, but sellers pushed back. Traders usually look for the next candle to confirm this reversal.
While the three white soldiers pattern highlights strong bullish pressure, the shooting star suggests that the trend is losing strength at the top.
How to Use These Patterns in Real Trades
Before you start applying these patterns in live trades, it helps to pause and take a broader view. Identifying them is one step, but knowing how to use them properly is where the real value comes in.
Here are five clear and practical ways you can apply Three White Soldiers and Shooting Stars.
1. Always Wait for Confirmation
Once a pattern forms, give it a brief pause. Entering right away might seem tempting, but waiting for confirmation is safer. With Three White Soldiers, check if buyers keep stepping in. With Shooting Stars, watch for a red candle that follows immediately. Taking this approach helps reduce the chances of false starts.
2. Check What Momentum Is Telling You
Patterns don’t tell the full story. For instance, a Three White Soldiers pattern combined with an RSI reading under 70 often suggests room to climb. But if RSI is already stretched, the move might run out of steam.
3. Step Back and See the Whole Picture
It’s easy to zoom in on a chart and get pulled into the moment. But patterns on lower timeframes can be misleading if the overall trend isn’t clear. A setup on a 15-minute chart might not mean much if the daily chart says the market is still stuck in a range.
4. Make Sure There’s Real Volume Behind It
Patterns that form in low volume are less reliable. A Shooting Star that appears late in the day with weak trading activity may not carry significant weight. On the other hand, if that same candle forms on rising volume, it could signal serious selling pressure. Always check volume to understand how much conviction the move really has.
Conclusion
Recognizing patterns such as White Soldiers and Shooting Stars can give traders a better sense of where the market might turn. These signals often highlight shifts in momentum. When combined with other reliable tools and applied with discipline, they support stronger decision making. The key is to stay alert, avoid rushing into trades, and always keep the larger market context in mind.