WEBVTT 00:02.980 --> 00:11.900 In this video, we're going to take a look at a pattern called three U.S. soldiers and three black crows. 00:11.920 --> 00:16.360 Now, the reason they're called white soldiers and black crows goes back. 00:16.360 --> 00:22.150 It harkens back to the old black and white charts in modern trading. 00:22.150 --> 00:24.230 Most charts are red and green. 00:24.280 --> 00:32.830 So it would be, you know, something to the effect of, I guess you could say, three green soldiers, 00:33.550 --> 00:39.640 three red crows doesn't make as much sense from a visual standpoint, but that's basically what you're 00:39.640 --> 00:40.180 looking at. 00:40.210 --> 00:41.170 So really. 00:42.260 --> 00:47.570 This is the pattern, it's that simple now, the purest pattern. 00:49.000 --> 00:53.320 We'll have gaps lower and then they'll rally a gap lower and then they'll rally. 00:53.350 --> 01:03.220 Now, this is an extraordinarily difficult pattern to achieve in most markets, with perhaps the exception 01:03.220 --> 01:04.350 being the stock market. 01:04.360 --> 01:07.390 So we actually use a variation of this. 01:08.350 --> 01:13.930 All we ask is that you dig into the candlestick from the previous candlestick. 01:13.990 --> 01:23.980 So, for example, you get a white candlestick and or a green candlestick and then maybe you continue 01:23.980 --> 01:25.210 to go higher, but. 01:27.130 --> 01:30.540 In the interim, you pull back into it, right? 01:32.360 --> 01:34.100 So maybe it looks something like that. 01:36.840 --> 01:40.270 And then the next one would be something like this. 01:41.190 --> 01:48.420 Now, this basically tells you the same thing, and what it tells you is that buyers are becoming aggressive. 01:49.420 --> 01:56.950 Three candles in a row, the three white soldiers pattern or three green soldiers, very bullish, suggesting 01:56.950 --> 01:59.610 that you're going to see a pretty big move higher. 02:00.250 --> 02:05.650 Typically what you'll do is you put your stop loss behind the middle candlestick and you'll buy on the 02:05.650 --> 02:06.130 top. 02:06.490 --> 02:08.470 Some people will put their stop all the way down. 02:08.470 --> 02:10.780 The bottom really kind of comes down to what you're comfortable with. 02:11.200 --> 02:16.270 But for the most part, if you're going to retrace that much of the move, you're going to have a losing 02:16.270 --> 02:16.540 trade. 02:16.540 --> 02:18.430 So you might as well save some of your cash. 02:18.430 --> 02:18.730 Right. 02:19.450 --> 02:25.780 So with the three Black Crows, as I'm sure you probably have already figured out, it is basically 02:25.780 --> 02:31.990 three black negative candlesticks traded the exact same way. 02:34.010 --> 02:41.840 You know, you're looking at a scenario where you really are starting to see momentum accelerate to 02:41.840 --> 02:42.570 the downside. 02:42.590 --> 02:43.730 So let's take a look at this. 02:43.730 --> 02:50.420 In the real world here in Bitcoin, the hourly chart, you can see that we rallied and then we pulled 02:50.420 --> 02:54.200 back and then we rallied for that hour. 02:54.260 --> 02:56.830 And then we pulled back into this hour and then rallied again. 02:57.620 --> 03:01.430 So once we broke the top of this, it showed extreme continuation. 03:01.910 --> 03:05.390 You could put your stop right there and you can see it just took off. 03:05.400 --> 03:07.270 I mean, it was a straight shot higher. 03:07.280 --> 03:14.150 So that's a three wait soldiers or three green soldiers set up. 03:15.650 --> 03:19.040 And in Litecoin, you get one, two, three. 03:21.360 --> 03:23.160 Candlesticks and roses are Black Crowes. 03:24.100 --> 03:30.190 You can break down below the bottom of the candlestick pattern and you can see, stop here, stop there 03:30.190 --> 03:31.080 doesn't really matter. 03:32.310 --> 03:34.640 It goes all the way down to the forty one dollars level. 03:34.710 --> 03:42.690 Now, again, this is a bit of a adjustment for day trading, but if you think about it, it makes perfect 03:42.690 --> 03:48.760 sense if you get expanding volume or expanding range three candlesticks in a row. 03:48.780 --> 03:50.250 Well, that means something. 03:50.460 --> 03:52.680 So that's how as a day trader, we use this pattern. 03:53.040 --> 03:59.820 You can see we had broken through support right here at forty five dollars, basically. 04:00.220 --> 04:01.550 So that was your first clue. 04:04.460 --> 04:08.150 You also could have traded with. 04:09.600 --> 04:11.790 You know, perhaps Bollinger bands. 04:14.810 --> 04:21.040 Because what you're going to see here is we had broken down that line and started to walk the line, 04:21.860 --> 04:24.590 so that's a very strong side to the downside. 04:25.790 --> 04:31.850 And you can see that the 20 Esmay simple moving average was right there, so you know that the 20 exponential 04:31.850 --> 04:34.290 is going to be probably just below it. 04:34.670 --> 04:39.980 So you were already underneath that to begin with, as you can see. 04:41.000 --> 04:42.200 When you zoom way out. 04:44.290 --> 04:46.390 There's an argument to be made for. 04:54.400 --> 05:00.430 This as well, which would be a major symmetrical triangle being broken down. 05:02.170 --> 05:10.300 And you did, in fact, get that move all the way down to here, so a lot of different factors setting 05:10.300 --> 05:15.490 up in this trade and with these trades, with the indicators your job is to when you see the pattern. 05:17.030 --> 05:21.670 Form support resistance, you need to find a couple of other reasons to get involved. 05:23.070 --> 05:28.290 This is why you should have your support resistance levels drawn on your chart to begin with and then 05:28.290 --> 05:34.350 the pattern and then the indicators, and then when you lay all that together, you have confluence, 05:34.350 --> 05:36.570 confluence leads to profits.