In this video, we're going to take a look at a pattern called three U.S. soldiers and three black crows.
Now, the reason they're called white soldiers and black crows goes back.
It harkens back to the old black and white charts in modern trading.
Most charts are red and green.
So it would be, you know, something to the effect of, I guess you could say, three green soldiers,
three red crows doesn't make as much sense from a visual standpoint, but that's basically what you're
looking at.
So really.
This is the pattern, it's that simple now, the purest pattern.
We'll have gaps lower and then they'll rally a gap lower and then they'll rally.
Now, this is an extraordinarily difficult pattern to achieve in most markets, with perhaps the exception
being the stock market.
So we actually use a variation of this.
All we ask is that you dig into the candlestick from the previous candlestick.
So, for example, you get a white candlestick and or a green candlestick and then maybe you continue
to go higher, but.
In the interim, you pull back into it, right?
So maybe it looks something like that.
And then the next one would be something like this.
Now, this basically tells you the same thing, and what it tells you is that buyers are becoming aggressive.
Three candles in a row, the three white soldiers pattern or three green soldiers, very bullish, suggesting
that you're going to see a pretty big move higher.
Typically what you'll do is you put your stop loss behind the middle candlestick and you'll buy on the
top.
Some people will put their stop all the way down.
The bottom really kind of comes down to what you're comfortable with.
But for the most part, if you're going to retrace that much of the move, you're going to have a losing
trade.
So you might as well save some of your cash.
Right.
So with the three Black Crows, as I'm sure you probably have already figured out, it is basically
three black negative candlesticks traded the exact same way.
You know, you're looking at a scenario where you really are starting to see momentum accelerate to
the downside.
So let's take a look at this.
In the real world here in Bitcoin, the hourly chart, you can see that we rallied and then we pulled
back and then we rallied for that hour.
And then we pulled back into this hour and then rallied again.
So once we broke the top of this, it showed extreme continuation.
You could put your stop right there and you can see it just took off.
I mean, it was a straight shot higher.
So that's a three wait soldiers or three green soldiers set up.
And in Litecoin, you get one, two, three.
Candlesticks and roses are Black Crowes.
You can break down below the bottom of the candlestick pattern and you can see, stop here, stop there
doesn't really matter.
It goes all the way down to the forty one dollars level.
Now, again, this is a bit of a adjustment for day trading, but if you think about it, it makes perfect
sense if you get expanding volume or expanding range three candlesticks in a row.
Well, that means something.
So that's how as a day trader, we use this pattern.
You can see we had broken through support right here at forty five dollars, basically.
So that was your first clue.
You also could have traded with.
You know, perhaps Bollinger bands.
Because what you're going to see here is we had broken down that line and started to walk the line,
so that's a very strong side to the downside.
And you can see that the 20 Esmay simple moving average was right there, so you know that the 20 exponential
is going to be probably just below it.
So you were already underneath that to begin with, as you can see.
When you zoom way out.
There's an argument to be made for.
This as well, which would be a major symmetrical triangle being broken down.
And you did, in fact, get that move all the way down to here, so a lot of different factors setting
up in this trade and with these trades, with the indicators your job is to when you see the pattern.
Form support resistance, you need to find a couple of other reasons to get involved.
This is why you should have your support resistance levels drawn on your chart to begin with and then
the pattern and then the indicators, and then when you lay all that together, you have confluence,
confluence leads to profits.