Here is an example of strategies for Three White Soldiers with RSI and SMA(20).
When during the course of a decline, the appearance of Three White Soldiers filtered by RSI at the oversold area.
One could consider buying when the next candle exceeds the high price of the pattern.
Place a protective stop loss at the bottom of the pattern.
You can consider the following actions, bearing in mind that a Take-Profit strategy is heavily dependent on the trading profile of each individual.
- Close 50% of the position when price travels 100% the last Long White Candle.
- Close the remaining 25% when price reaches the 200% of the length of the last Long White Candle.
- Move the protective stop-loss at the top of the pattern.
- Close the remaining 25% of the position at the presence of a reversal candlestick or when price closes below the SMA(20) or when price travels 300% of the length of the pattern, whichever happens first.
- Other combinations may be applied.