Definition and SMC Context

The Three White Soldiers is a Japanese candlestick pattern consisting of three consecutive long-bodied bullish candles, each closing higher than the previous one, typically appearing after a minor correction or accumulation phase, signaling strong continuation of an uptrend. In Smart Money Concepts (SMC), this pattern often confirms institutional buying after a liquidity grab at lower prices.

How to Identify

Three consecutive bullish candles with long real bodies and very small (or no) lower wicks.

Each candle opens within the previous candle’s body (slight gap up) and closes near its high, showing sustained buying pressure.

Increasing volume across the three candles reinforces the bulls' strength.

Often found at demand zones after a Break of Structure (BOS) or a pullback to a Fair Value Gap (FVG).

How to Trade Using SMC

Entry: After the pattern completes, wait for a minor pullback into the FVG created between the second and third candles, or into the prior BOS level. The ideal entry is when price retests the demand zone with a rejection signal (e.g., a bullish Pin Bar).

Stop Loss: Below the demand zone or the lowest wick of the pattern.

Take Profit: First target at the nearest swing high (sell-side liquidity), further target at higher timeframe liquidity pools.

Real Example

On the EUR/USD H4 chart, after a downtrend, the Three White Soldiers pattern formed at a demand zone following a liquidity sweep below a previous low. Combined with a BOS signal, it confirmed the bullish trend. A small FVG appeared between candles 2 and 3; price later pulled back into that FVG and continued rallying.

Common Mistakes

Ignoring context: The pattern must appear in an uptrend or after a clear corrective phase with proper structure.

Candles with short bodies or long wicks: This suggests weak buying pressure, leading to potential failure.

Trading without additional confirmation (e.g., BOS, FVG, volume), especially near strong resistance.

Combining with Other Tools

To enhance reliability, combine with RSI (positive divergence) or chart patterns like Bull Flag. In SMC, this pattern is most effective when it appears after a Change of Character (ChoCh) confirming trend reversal.

Content is for reference only, not investment advice. Forex trading carries high risk.

Three White Soldiers - Strong Bullish Continuation Pattern