Reading the market regime before prices move
Three White Soldiers: three consecutive bullish candles with large bodies. Each candle opens inside the body of the previous one and closes higher, with slight upper shadows showing buyers in control for the whole session.
Three consecutive green candles, each opening inside the body of the previous one and closing near its high: a disciplined institutional advance, not a burst of excitement. The catch is that the pattern completes after a sizable rise, a third of which is already gone. A pullback right after it is often a cleaner place to look than the third candle, with the stop under the low of the second. The pattern reads better as a sign of a regime change than as an immediate trigger: afterwards, dips tend to get bought and rallies tend not to get sold.
Buying right after the third candle completes: three big candles mean a short-term stretch and a likely pullback that hits a chaser's stop before the move resumes. It is also confused with three green candles of accelerating bodies and long upper shadows. That is a burst of frantic buying, not a disciplined advance, and it often comes before a reversal rather than a continuation.
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