All language subtitles for 10. How to Trade Price Action With Three White Soldiers and Three Black Crows

Hello and welcome back to cryptocurrency trading masterclass by wealthy education.

In this video, we're going to take a look at a three Cambuslang pattern called three white crow, three

black soldiers.

They are two different patterns.

So you have the.

White soldiers on the left and you have the black crows on the right or green and red.

This goes harkens back to the old black and white charts like in the newspapers and such.

Essentially, what happens is this is basically a stock market pattern, it really doesn't happen in

crypto, but there are ways you can modify it.

So essentially what happens is on a daily chart, you get a.

Move to the upside, then the second day, you get a gap lower, which should be very negative, but

we blow through that gap and continue to go higher than on the third day, you get a gap lower and you

go higher.

So the idea is that the market might do something like this in the first day.

The second day comes in on a gap lower, which should send selling, but we wipe all those sellers out

and then we do it again.

And that just shows real tenacity.

Same thing here with selling, you get a gap higher and the sellers come back and you get a gap higher

and the sellers come back in.

Right.

So it does make sense.

That it shows real strength or weakness, depending on which direction.

So in crypto, what we're doing is we're looking for candlesticks that instead of doing this, might

do something like.

Something like this where it dips into the previous candlestick.

Because, you know, we don't really close and that by itself would make the existence of the three

white crows of the three white soldiers, of the three black crows, completely impossible.

But here's an example.

Of what I would consider to be three white crows on a four hour chart and a theory.

And that's because we dip into the previous candle and continue to fight higher.

Basically, it's a momentum play.

That's really all it is.

You don't need to overcomplicate it with anything more than that.

You get your moving average, the nine moving average showing signs of strength.

It makes quite a bit of sense.

Quite often you'll see it after a break of either resistance or a psychological level.

Well, eight hundred causes a lot of people to pay attention to the market.

So a theory makes a move and then dips underneath 800 might be too expensive, right?

Nope.

And we continue to push much higher.

Much, much higher.

Actually, it was the beginning of a pretty good move.

So here's another example.

In Litecoin.

Four hour time frame as well, you can see nice reversal candle here, dip back into it.

Struggle, fight, dipped slightly, struggle, fight, if you remember, that was that double inverted

hammer, so yes, it could be thought of as free White Crows as well.

And you'll find that as as you learn more about patterns, a lot of times one can kind of be the other.

And at the end of the day, they're telling you the same thing.

So it's kind of irrelevant what you want to label it.

So how do you.

Put your stop loss.

Well, the stop loss is pretty simple, it's just on the other side of the pattern.

So in this case, if you go long and a breakup, the third candlestick stop loss goes down here.

Well, where are you aiming?

That will, of course, depend on the market you're in.

But in this case, this was an area of resistance previously.

So it makes sense that we stalled out there.

Let's go ahead and put a.

Couple of moving averages on this one, you see the nine supports is quite nicely.

Go ahead and put the 20 on that one.

And you'll see that they crossed right there, so the line crossed over the T in a sign of strength.

Bitcoin, so this would be three black crows or three red candles.

Now I actually see.

Multiple examples of this.

On this chart, you can see.

Right here, you know, we continue to dig into that.

You can see right here, although I don't like this one, that's much because you could have made an

argument for a hammer there.

You don't really want conflicting signals, but technically, that is true.

And right here, so they're not as rare as you think, especially a short time frames.

A trial set up, of course, is only in the stock market or markets the close.

So, again, we don't get that now a true one in stock market.

You can really see these things take off.

So.

When you look at this.

This one here, it makes sense because that was previous support, right?

You can also make an argument.

For this one here, because that was previous support, so clearly we are dropping.

You can see that the market tried to rally and then we broke through the Bollinger Band midpoint at

this juncture, so that comes into play as well.

It suggests that we are going lower.

And then beyond that.

We can draw a fib.

A Fibonacci.

Retreatment.

And you can see that this started.

At the 50 percent Fibonacci retracement level, just as this one started at the thirty eight point two

of the move lower, so all of this ties in and nicely.

But at the end of the day, really what you're seeing is three candlesticks moving in a particular direction.

That typically means that there's momentum, that there's convection.

You want to see it fight back a little bit and get repelled?

That's essentially what you're looking for.

You know, they in this case, they they try to push it higher and they fail.

They try to push it higher and they fail.

They try to push it higher and they fail.

And this was actually more like.

Five black crows, truthfully, I suppose you could call it.

But nonetheless, three is more than enough.

You were never threatened with losses in any of the setups I showed.

It's not to say that it works 100 percent of the time, but it's got pretty strong accuracy because

you are clearly, at least at that point, treading with the short term trend.

Otherwise, a pattern couldn't even exist, so something to think about.

That is the last video of module two, next module by module three, and we'll take a look at real world

examples on how to trade various setups in multiple cryptocurrency pairs.