The Ninja Trader’s Guide to Mastering Supertrend and Three White Soldiers

Ever feel like your trades have been going south faster than a pigeon with a jetpack? Well, you’re not alone, but that doesn’t mean you need to stay grounded. In today’s blog post, we’re diving deep into a super-combo of technical analysis: the Supertrend Indicator and the Three White Soldiers pattern—two strategies that, when used correctly, could turn your trading life around faster than you can say “stop-loss.” Buckle up, because this is going to be one heck of an advanced ride—filled with humor, hard-hitting tips, and, of course, some secrets only the insiders know.

The Real Power of Supertrend: It’s Not Just a Fancy Name

Alright, let’s cut straight to it. Supertrend Indicator is that thing people often use to decide whether it’s time to hop on the bull or bear bus. Think of it like the traffic lights of trading: when the signal turns green, you go, and when it’s red, you stop—simple enough, right? Well, here’s the kicker: most people have been using this indicator all wrong.

Here’s where the real magic happens: Supertrend is not just for entry and exit signals. If you’re relying on it like a GPS telling you “turn left,” you’re missing out. Instead, try combining the Supertrend with advanced candlestick patterns, like the Three White Soldiers, to unveil when a trend is more likely to become explosive. Yup, explosive—and I don’t mean the bad kind, like the feeling you get when you accidentally press ‘sell’ instead of ‘buy.’

Three White Soldiers: Are They Marching to Your Profit Parade?

Next up, let’s talk about the Three White Soldiers. Sound dramatic? You bet it is. And when this candlestick pattern shows up, it’s as if the market is literally sending in reinforcements. Picture it like this: you’re in the trenches of a market downturn, and suddenly three big, bullish soldiers march in, all strong and confident. That’s the Three White Soldiers pattern—a signal that the tide is turning in your favor.

But here’s the little-known secret—using the Three White Soldiers as a standalone pattern is like eating cereal without milk. It’s possible, but you know there’s a better way. When you see this pattern paired with a Supertrend signal that’s green, it’s like the market is handing you a giant neon arrow pointing to the exit of “bad trade city.” That’s when you know you’ve got a potential gold mine.

Insider Trick: Combining Supertrend & Three White Soldiers for Strategic Entries

Here’s something that even your favorite trading “gurus” might not tell you—the combination of Supertrend with Three White Soldiers can be deadly effective, but only if you understand the timing. The average trader might see these soldiers and jump in immediately. But the real pros, the ones making the big bucks, they know how to confirm these signals.

The secret? Wait for the Supertrend to turn green, then watch for Three White Soldiers within a consolidation zone. You see, when Three White Soldiers form right after the market breaks out of consolidation, it’s often the start of a longer, sustainable trend. The Supertrend indicator, in this context, helps you validate if that momentum has the juice to carry forward.

Think of it like this: You wouldn’t jump on a roller coaster if you didn’t see the seatbelt light turn on, right? The Supertrend is that seatbelt for your trades, giving you the confidence that this is more than just a quick burst of bullishness.

Contrarian Alert: When the Soldiers Might Mislead You

Now here’s an advanced move—understanding when to ignore the Three White Soldiers. Yup, you read that right. While it’s usually a strong reversal signal, when these soldiers march in after a market that’s already been pumping hard, they could be misleading you straight into a bull trap. That’s why pairing them with Supertrend adds that much-needed second opinion. If Supertrend doesn’t give the green light? Stay away, no matter how much those soldiers seem to beckon you.

Avoiding the Classic Pitfalls (And Laughing at Them)

It’s time to debunk some myths—and have a good laugh at them too. Ever hear the phrase “follow the trend and you’ll be rich”? Yeah, well, if it were that easy, the Forex world would be filled with millionaires—traders driving Ferraris while sipping iced coffee at their poolside office. In reality, blindly following trends without understanding why they’re happening is like following a stranger down a dark alley because they say they’re giving away free money.

Here’s a classic newbie mistake: trading without confluence. If you just take every signal from the Supertrend or every Three White Soldiers you see, you’re going to end up with losses faster than you can say “margin call.” Instead, look for confluence—use multiple timeframes, support and resistance zones, and volume confirmations. It’s like making sure your parachute is double-checked before you jump—do you really want to take chances here?

Underground Moves: Supertrend Settings the Pros Use

Want to know how pros are tweaking their Supertrend settings to get a leg up on the competition? Most traders default to ATR 10, multiplier 3, but the hidden opportunity lies in adjusting these settings. By shifting to an ATR of 7 and a multiplier of 2, you’re essentially speeding up the Supertrend reaction, which is particularly useful for highly volatile pairs like GBP/JPY or EUR/NZD.

But here’s the trick: You don’t use this faster setting on all pairs—only those with high average daily ranges. On steadier pairs like EUR/USD, stick to a more conservative setting like ATR 14 and multiplier 3. Treat it like customizing your ride—sports mode for fast streets, and cruise control for those smooth highways.

The Secret to Predictive Entries: How to Really Use Three White Soldiers

Here’s another gem for you—predictive entries. Most traders wait for the Three White Soldiers to fully form before making a move. But here’s the deal: the real edge is in recognizing the start of that first soldier, not waiting for all three to show up to the party. When you see that strong bullish candle at a key support zone—particularly after the Supertrend indicator turns green—it’s time to get ready.

Think of it like spotting a trend before it becomes obvious—you’re seeing the party balloons being set up before the “birthday party” banner even goes up. And that’s the beauty of predictive entries: you’re early to the scene and ready to maximize the potential gains.

Case Study: Real-World Example of Supertrend & Three White Soldiers in Action

Let’s look at a real-world example. Back in June 2024, the EUR/USD pair had been trending downward for weeks. Suddenly, a Three White Soldiers pattern formed around a long-established support level. But guess what? The Supertrend indicator was still showing red. A lot of novice traders jumped in thinking they caught the trend reversal—only to see it retrace sharply and wipe out their stop-losses.

Fast forward three days, and finally, the Supertrend flips to green. Now, with the soldiers lined up and the Supertrend backing it, the subsequent rally saw a near 300-pip gain. This is why patience and confluence are key—trading isn’t just about speed, it’s about precision and strategy.

Final Thoughts: Make This Your Trading Advantage

Combining the Supertrend Indicator and Three White Soldiers can be one of the most effective ways to spot trend reversals with confidence. But it’s all about using these tools intelligently. Remember, don’t just march to the beat of anyone’s drum—find the rhythm that works for you, understand the nuances, and only enter the trade when all the signals align.

And if you’re looking to sharpen your trading skills even more, why not check out some of our free resources below? From in-depth Forex education to real-time indicators, we’ve got everything to turn you from a confused beginner into a battle-ready trading warrior.

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Image Credits: Cover image at the top is AI-generated