Three White Soldiers & Three Black Crows: Momentum Confirmation

1. Market & Order Flow Logic

Three White Soldiers (bullish) and Three Black Crows (bearish) represent pure institutional accumulation or distribution. The pattern consists of three consecutive long-bodied candles with small wicks, each opening within the previous candle's real body and closing near the extreme.

This demonstrates continuous market buying or selling where pullbacks are not permitted to develop, proving total control by dominant market participants.

2. High-Probability Entry Rules

• Breakout Entry: Enter on the immediate close of the 3rd candle.
• Pullback Entry (Recommended): Wait for a low-volume retest of Candle 2's midpoint/high to achieve tighter risk.

3. Invalidation & Stop Loss Rules

• Aggressive SL: Below the low of Candle 3.
• Conservative (Standard) SL: Below the origin low of Candle 1.

4. Multi-Tiered Take Profit Strategy

• TP1 (50% Volume): 100% measured expansion of the 3-candle range (1:2.0 RRR).
• TP2 (50% Volume): 161.8% Fibonacci expansion (1:3.5 RRR).

5. Common Pitfalls & Traps to Avoid

• Advance Block Exhaustion: If Candle 3 has a tiny body and a long upper wick, the impulse is exhausted. Do not buy into an advance block.
• Overextended Blow-Off: If Candle 3 is 3x larger than average, it is a climactic blow-off top rather than a sustainable trend continuation.

INSTITUTIONAL DESK PRO TIP: Avoid chasing the top of Candle 3. Set a limit order at the 50% midpoint of Candle 2 to catch the standard intraday liquidity retest.