In this article, we will show you how to recognize and trade with a reliable reversal pattern. It is Three White Soldiers candlestick pattern. This is a very popular pattern among experienced traders when trading in Binomo.
What is Three White Soldiers candlestick pattern?
Three White Soldiers pattern is the name of a pattern with 3 bullish candlesticks. It often appears when the price develops an upward trend. Traders always concentrate and observe when this pattern appears and find the right time to open a trade.
It is an easy-to-recognize pattern with 3 bullish candlesticks with the main points as below:
• The opening price and closing price of each candlestick in the pattern are higher than the opening price and closing price of the last candlestick.
• The closing price of each candlestick has to be equals to the highest price (the candlesticks have small shadows).
In Binomo, Three White Soldiers pattern often appears. It is also at the beginning of the new trend. As it is a sign of the fact that the price increases, you can open UP options.
Three White Soldiers candlestick pattern trading strategy
Just like other patterns, it is quite risky when you trade with only one indicator. Therefore, you should use the sign in combination with other indicators to enhance the reliability of the sign as well as help you feel more confident to start a trade. Because this pattern signs the beginning of the uptrend, you can open UP options when you see this pattern in Binomo.
Strategy 1: Combine with the support level
Requirement: 5-minute candlestick chart, find the support level of the price. Open a trade with the expiration time from 15 minutes
UP option = the price tests the support level + Three White Soldiers pattern appears.
Strategy 2: Three White Soldiers candlestick pattern in combination with RSI at the oversold zone
Requirement: 5-minute candlestick chart + RSI indicator. Open UP in 15 minutes.
UP option = Three White Soldiers pattern + RSI in the oversold zone (Oversold – RSI cuts the 30 from under it).
It is easy to identify this pattern and find the entry point to start a trade. You can start learning about Three White Soldiers candlestick patterns from today with your demo account. In the next articles, Binomowiki will tell you more about this pattern.