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Three White Soldiers & Three Black Crows Forex Swing Trading Strategy
The three soldiers pattern is a bullish reversal candlestick and they form after a bearish market. If these 3 candlesticks are formed, it indicates the end of the downtrend.
The three black crows pattern is a bearish reversal candlestick and they form after a bullish market. If these 3 candlesticks are formed, then it indicates the end of an uptrend.
Trading Rules:
- Trade these 2 patterns in a support/resistance levels, Fibonacci levels or pivot levels. Trade in significant areas.
- Place a buy stop order 3-5 pips above the high of the 3rd candlestick. If 3 black crows are formed, place a sell stop 3-5 pips below the low.
- Stop loss should be placed above the 3rd candlestick’s high if you placed a sell stop order or place a stop loss below the 3rd candlestick’s low if you entered a buy stop order.
- Take profits on the previous swing highs and lows or you can trail the stop by moving the stop loss when the market is in your favor.
- Learn to take partial profits off the table when price moves at least halfway point to reach your take profit target level.
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