 |
|
||
 |
|||
Bearish 3 White Soldiers Candlestick Pattern Trading Guide
Step 1 - Look for 3 WHITE SOLDIERS against Minor Price Resistance, and/or a declining Major Moving Average (10 MA, 20 MA, or 50 MA). Ideally you want to find a series of 3 green candlesticks; however, 2 green candlesticks can also work well.Step 2 - Pull up a 15 min. chart of the stock. 
Step 3 - Monitor the stock's trading during the last 30 minutes before the close, and enter only if the stock is closing weak near it's low price of the day. You will reduce the risk of the by entering only if the range of the day (high price minus low play price) is narrow. This way, when you set your protective stop at the day's high, you will only take a small loss if the stock should reverse.Step 4 - Observe the daily chart after the market has closed. The stock has now formed a BEARISH HARAMI on the daily chart, but you were able to spot the setup on the previous day and enter before the rest of the herd! On the next day, observe where the stock opens. If the stock opens relatively near to the opening price (say within 5/8th), place the initial protective stop 1/8th above the high of the previous day's candlestick. Exit the stock immediately if the stock breaks above this price. If the stock gaps down, proceed to Step 6. If the stock gaps up, proceed to Step 8. 
Step 5 - Monitor the stock as it continues to decline downward. Look for areas of resistance (either minor price resistance or base price resistance) on the 15 minute chart, and re-adjust your protective stop price to 1/8th above these levels of resistance. This will protect your profits, and/or minimize your losses if the stock should turn against you.Step 6 - If the stock closes weak on the previous day, there is a good chance that the play will be spotted by other traders (note that it has now formed a BEARISH HARAMI on the daily chart), and result in a morning price gap downward. If the stock gaps down by over 5/8 point, cover half of the position immediately after the open to lock in your profit. Place a protective stop 1/8th above the high of the first 15 min. candlestick for the remainder of your position. 
Step 7 - Monitor the stock as it continues to decline downward. Look for areas of resistance (either minor price resistance or base resistance) on the 15 minute chart, and re-adjust your protective stop price to above these levels of resistance. This will protect your profits, and/or minimize your losses.
Step 8 - It is also possible for the stock to gap up on the following day due to overall market strength. If the stock gaps up and opens 5/8th higher than the previous day's close, DO NOT PANIC AND COVER RIGHT AWAY. In most cases, the stock will sell off after a gap up, and the high price of the day will occur in the first 5 minutes of trading. Let the stock trade for 5 minutes and place a protective stop 1/8th above the high of the first 5 minute candlestick. Cover the stock immediately if it breaks this protective stop.Step 9 - Monitor the stock as it continues to decline downward. Look for areas of resistance (either minor price resistance or base price resistance) on the 15 minute chart, and re-adjust your protective stop price to 1/8th above these levels of resistance. This will protect your profits, and/or minimize your losses. 
Step 10 - Monitor the stock as it declines downward, and stay in as long as the protective stop is not violated. After the stock has achieved 1 point profit or greater, look for signs of strength. A bullish candlestick on the 15 minute chart will serve as a good indicator for a reversal point. After the price reaches an area of support and strength, cover half of your position. This may occur on the same day as entry, or on the following day, depending on the weakness of the stock. Maintain the latest protective stop price for the remaining half of your position.
Step 11 - Allow the stock to continue it's decline. After the stock has declined further, again look for an area of support where the stock begins to strengthen and reverse. This could be a DOJI candlestick, or any other reversal candlestick pattern on the 15 min. chart. Cover the remainder of the position for profit.
|
Free Investing Materials:
Learn Winning Trading System - FREE
Free Stock Trend Analysis
Doublingstocks Newsletter Trial Offer
Free Stock Picks for 30-days
FREE Elliott Wave Tutorials
Free Trading E-Book
Free Trading Videos from INO TV
Free Trading Teleseminar Series
Free Trading Audio Learning Series
Free Investor eBook
Video: Learn Key Trading Principles
Free Classroom Trading Education
Web Hosting By: Hostgator
Hostgator web hosting discount coupon
TradingTrainer Options Education Commentary
TradingTrainer Options Trading Apprentice Program
MarketClub Trading Service
Trading Guides and Tutorials:
Introduction To Elliott Wave Principle
Profitable Trading Using Elliott Wave Analysis
Larry Williams' Ultimate Oscillator
Understanding Stock Basics Part I
Understanding Stock Basics Part II
Maintaining Proper Trading Psychology
Learn How To Trade a Bullish Harami Pattern
Learn How To Trade a Bearish Harami Pattern
Guide To Trading a Bullish 3 Black Crows Pattern
Guide To Trading a Bearish 3 White Soldiers Pattern
Guide To Trading a Long Red Candlestick Pattern
Guide To Trading a Long Green Candlestick Pattern
Guide To Trading a Bullish Thrusting Line Pattern
Learn Winning Trading System - FREE
Free Stock Trend Analysis
Doublingstocks Newsletter Trial Offer
Free Stock Picks for 30-days
FREE Elliott Wave Tutorials
Free Trading E-Book
Free Trading Videos from INO TV
Free Trading Teleseminar Series
Free Trading Audio Learning Series
Free Investor eBook
Video: Learn Key Trading Principles
Free Classroom Trading Education
Web Hosting By: Hostgator
Hostgator web hosting discount coupon
TradingTrainer Options Education Commentary
TradingTrainer Options Trading Apprentice Program
MarketClub Trading Service
Trading Guides and Tutorials:
Introduction To Elliott Wave Principle
Profitable Trading Using Elliott Wave Analysis
Larry Williams' Ultimate Oscillator
Understanding Stock Basics Part I
Understanding Stock Basics Part II
Maintaining Proper Trading Psychology
Learn How To Trade a Bullish Harami Pattern
Learn How To Trade a Bearish Harami Pattern
Guide To Trading a Bullish 3 Black Crows Pattern
Guide To Trading a Bearish 3 White Soldiers Pattern
Guide To Trading a Long Red Candlestick Pattern
Guide To Trading a Long Green Candlestick Pattern
Guide To Trading a Bullish Thrusting Line Pattern
Useful eBooks:
The Candlestick Charting ebook
Guide to Consistent Trading Profits
Trend Strategist Handbook
The Stock Trading Guide
Breakout Pattern Trading Strategies
How To Develop a Profitable Trading System
Stock Options Trading Strategies
Useful Indicators and Chart Studies:
Bollinger Bands
CandleStick Patterns
Chaiken Oscillator
Channel Commodity Index
Elliott Wave Theory
Fibonacci Retracements
MACD Indicator
Momentum Indicator
Money Flow Index
Moving Averages
On Balance Volume
Overbought Oversold Indicators
Puts Calls Ratio
Relative Strength Index
Stochastic Oscillator
Trend Lines
Ultimate Oscillator
Volume
Volume Oscillator
Williams %R Indicator
Williams Advance Decline
Featured Trading Articles:
Bleak Outlook for Housing and Lending
Subprime Mortgage Meltdown
Differentiating Financial Mania and an Actual Bull Market
Who's To Blame For The Housing Market Disaster?
The Fed and Credit Crunch
Housing Bubble Opportunities
The Real Estate Situation
The Fed and The Housing Fears
Subprime Mortgage Disaster
Preparing For Real-Estate Opportunities
What is Forex?
Stock Trading Guides and Tutorials
The Candlestick Charting ebook
Guide to Consistent Trading Profits
Trend Strategist Handbook
The Stock Trading Guide
Breakout Pattern Trading Strategies
How To Develop a Profitable Trading System
Stock Options Trading Strategies
Useful Indicators and Chart Studies:
Bollinger Bands
CandleStick Patterns
Chaiken Oscillator
Channel Commodity Index
Elliott Wave Theory
Fibonacci Retracements
MACD Indicator
Momentum Indicator
Money Flow Index
Moving Averages
On Balance Volume
Overbought Oversold Indicators
Puts Calls Ratio
Relative Strength Index
Stochastic Oscillator
Trend Lines
Ultimate Oscillator
Volume
Volume Oscillator
Williams %R Indicator
Williams Advance Decline
Featured Trading Articles:
Bleak Outlook for Housing and Lending
Subprime Mortgage Meltdown
Differentiating Financial Mania and an Actual Bull Market
Who's To Blame For The Housing Market Disaster?
The Fed and Credit Crunch
Housing Bubble Opportunities
The Real Estate Situation
The Fed and The Housing Fears
Subprime Mortgage Disaster
Preparing For Real-Estate Opportunities
What is Forex?
Stock Trading Guides and Tutorials
Site Partners
Options Trading Books
Trading References
Contact Us
Link To Us
Advertise