Volume Profile & Three White Soldiers: The Hidden Power Combo Elite Traders Won’t Tell You

If you’ve ever watched your stop-loss get hit faster than your morning coffee cools down, you know the pain. Trading can feel like trying to parallel park in front of a crowd—one wrong move, and you’re on display. But what if I told you there was a behind-the-scenes cheat code that elite traders guard like it’s the last slice of pizza? Enter Volume Profile and Three White Soldiers—the secret handshake of precision entries and sniper-level trade confirmations.

But here’s where it gets spicy—most traders only scratch the surface. Today, we’re diving deep into the vault of underground techniques. We’re talking hidden liquidity zones, trap setups, and ninja-level confirmations that can stack the odds in your favor.

Let’s unlock this elite arsenal.

Volume Profile: The Market Map They Don’t Want You to See

Picture this: You walk into a grocery store. There’s a huge crowd around the cereal aisle. Odds are, something good (or on sale) is there. Volume Profile is the trading equivalent—it shows you exactly where traders are swarming, revealing price levels with heavy buying and selling interest.

Little-Known Volume Profile Secrets:

1. High Volume Nodes (HVN): These are the price zones where the market spent a lot of time and volume. They act like magnetic fields—prices love returning to them.
2. Low Volume Nodes (LVN): Think of these as empty parking spots—prices zoom through them quickly. They often trigger rapid moves.
3. Point of Control (POC): The price level with the highest traded volume. A battleground. When price revisits it, prepare for a tug-of-war or breakout.

Elite Tactic: The Volume Profile Fakeout Sniper Move

• When price breaks through an LVN but returns fast, it often triggers trapped breakout traders. Spot this, and you can ride the reversal back toward the HVN.

Example:

In January 2024, GBP/AUD formed a textbook LVN fakeout near 1.8700, trapping sellers before surging 150 pips to the nearest HVN. Traders who spotted this pattern had a risk-reward ratio exceeding 1:5.

Three White Soldiers: The Power Trio with a Twist

Imagine waking up to see your favorite underdog team score three back-to-back goals. That momentum? That’s the Three White Soldiers in candlestick form. It’s a bullish pattern of three consecutive green candles, each closing higher than the last.

What Makes the Real ‘White Soldiers’ Different:

• Strong Body Candles: Weak, wicky soldiers are like stormtroopers—they miss the target. You need full-bodied, decisive soldiers.
• Minimal Wicks: These indicate buyers are in control. Excessive wicks signal hesitation.
• Increasing Volume: Volume confirms strength. Low volume? False breakout risk.

Hidden Insight: The 4th Candle Syndrome

Most traders jump in after the third candle. But pros watch the fourth. If it closes above the third with volume, that’s your green light.

Example:

EUR/USD in December 2023: After a Three White Soldiers pattern formed near 1.0800, the fourth candle confirmed with rising volume, leading to a 90-pip rally over two days.

Combining Volume Profile & Three White Soldiers: The Secret Sauce

This is where you become the trader who gets asked, “How did you know it would bounce there?”

The Setup:

1. Identify a High Volume Node (HVN): Preferably after a recent LVN rejection.
2. Watch for Three White Soldiers Near the HVN: If the pattern forms near this liquidity zone, it’s like adding jet fuel to the setup.
3. Volume Confirmation: Ensure the pattern forms on increasing volume. Fake moves often occur on low volume.
4. Trigger Entry: Enter after the third candle closes, or use the fourth candle confirmation for added safety.

Ninja Tip: The Hybrid Soldier Sniper Entry

• If the third soldier candle closes near an LVN and the price retraces slightly into it, that’s your sniper entry.

Example:

GBP/AUD on February 12, 2024: After price rejected an LVN near 1.8820, Three White Soldiers formed. The fourth candle confirmed above 1.8850 with strong volume, resulting in a 180-pip surge over 3 days.

Counterintuitive Insight: When Three White Soldiers Is Actually a Bull Trap

Most traders blindly trust this pattern. But here’s the uncomfortable truth—sometimes it screams bull trap.

Red Flags to Watch:

• Pattern Forms Far From Volume Profile Hotspots: If it forms in a volume desert, beware.
• Declining Volume on the Third Candle: Buyers are exhausted.
• Broad Market Divergence: If correlated pairs show weakness, tread carefully.

Example:

In July 2023, USD/JPY displayed Three White Soldiers near 141.00, but declining volume hinted at buyer fatigue. The result? A nasty 110-pip pullback the next day.

Game-Changing Techniques You Won’t Find in Textbooks

1. The Hidden Buyer Zone Scan:

Use the Volume Profile to find price levels where large orders accumulated but price hasn’t revisited. When price returns, buyers often defend these levels fiercely.

2. The Volume Profile + VWAP Combo:

Combine Volume Profile with the Volume Weighted Average Price (VWAP). If Three White Soldiers form above the VWAP and near an HVN, it’s a premium setup.

3. Stop-Loss Hack:

Instead of placing your stop below the third candle, use the nearest LVN. Algorithms hunt obvious stops; this keeps yours hidden.

Key Takeaways – Your Elite Trader Toolkit:

• Volume Profile reveals hidden liquidity zones.
• Three White Soldiers confirm strong bullish intent—but only with volume.
• Combining the two uncovers sniper entries and reduces false signals.
• Watch the fourth candle for real confirmation.
• Avoid low-volume traps and far-from-liquidity patterns.

Ready to level up?

• Stay ahead of the market with our Real-Time Economic Indicators: Forex News Today
• Master advanced trading with our Free Forex Courses: Free Forex Courses
• Join an elite community for Daily Alerts & Live Analysis: StarseedFX Community

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