ThreeWhiteSoldiers

Description

Three white soldiers is three white candlesticks with consecutively higher closes. Each white candle should close at or near the high. The real body length of all three bars should be nearly the same. If the second, and second and third, candlesticks are smaller than the first, the pattern is called an Advance Block. If the second candlestick is a long white form and the first and third candlesticks have small real bodies, a Stalling Pattern emerges.

Three                        Advance                Stall

White                        Block

Soldiers

Formula

ThreeWhiteSoldiers(INPUT, Stringency=5, LRRange=10, LRType=3, CandleDeviation=0.17, LongCandle=2)=begin

  retval = NONUM

  targetBar = 0

  pnt1 = targetBar

  pnt2 = (targetBar + 1)

  pnt3 = (targetBar + 2)

  r1 = Range($1, pnt1)

  r2 = Range($1, pnt2)

  r3 = Range($1, pnt3)

  thisDev = DevRange($1, pnt1, 3)

  if WhiteBody($1, pnt1) == TRUE AND WhiteBody($1,pnt2)==TRUE AND WhiteBody($1,pnt3) then begin

    if RealBodyHigh($1, pnt1) > RealBodyHigh($1, pnt2) AND RealBodyHigh($1, pnt2) > RealBodyHigh($1, pnt3) then begin

      if Stringency >= 5 then retval = '5'|clr_green|arrow|vertical|ftiny|below

      if RealBodyLow($1,pnt1) > RealBodyLow($1,pnt2) AND RealBodyLow($1, pnt2) > RealBodyLow($1,pnt3) then begin

        if Stringency >= 4 then retval = '4'|clr_green|arrow|vertical|ftiny|below

        if RealBodyHigh($1, pnt3) < RealBodyHigh($1, pnt2) AND RealBodyHigh($1, pnt2) < RealBodyHigh($1, pnt1) then begin

          if Stringency >= 3 then retval = '3'|clr_green|arrow|vertical|ftiny|below

          if Bullish($1, pnt3, LRRange, LRType) OR Bullish($1, pnt2, LRRange, LRType) OR Bullish($1, pnt1, LRRange, LRType) then begin

            if Stringency >= 2 then retval = '2'|clr_green|arrow|vertical|ftiny|below

  if thisDev < CandleDeviation then begin

              retval = 'TWS'|clr_green|arrow|vertical|ftiny|below

            end

            if r2 > r1 AND r2 > r1 then begin

              if LongForm($1, pnt2, LongCandle) then retval = 'STALL'|clr_red|arrow|vertical|ftiny|above

            end

          end

        end

      end

    end

  end

  retval

end

Parameters

INPUT

The INPUT directive makes this formula available as a Formula Overlay. INPUT refers to the instrument in the chart.

Stringency

The Stringency argument is used by nearly all candlestick overlays. It controls how many tests must pass in the evaluation of the Three White Soldiers pattern. The lower the number, the more strict the interpretation.

The Stringency argument is an overlay parameter. You can adjust it using the Parameters dialog. The default is 5.

LRRange

The TwoCrows overlay uses the LR() function with either a continuous or quadratic calculation to determine how a market is trending. The LRRange (Linear Regression Range) parameter is the number of points in the Linear Regression calculation. The default is 10.

LRType

The LRType parameter has two possible settings: 2 and 3, or continuous linear regression and quadratic linear regression, respectively. The default is 3, or quadratic.

CandleDeviation

The CandleDeviation parameter sets a deviation between the three white real bodies of this pattern. The formula calculates a standard deviation of real body length. If the standard deviation is less than the CandleDeviation parameter, the pattern is valid. The default is 0.17.

LongCandle

The LongCandle is a percentage move on the day that constitutes a long candlestick.  The default is 2, or two percent.

Return Value

The return value is a string plot and varies depending on the value of the Stringency parameter.  The lower the number, the stronger the pattern.

Bullish indicators are rendered in green below the candlestick.

The string plot for a fully qualified Three White Soldiers is the abbreviation "TWS" rendered in green below the candlestick. The Three White Soldiers pattern can also indicate a stall if the middle bar in this three-bar pattern has a long real body and the soldiers on either end have a smaller real body. Such patterns are rendered "Stall" in red above the candlestick.

Examples

Comments

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