Moving Average and Three Soldiers or Three Crows Trend Signals

Summary

This indicator combines a moving average filter with three soldiers and three crows candlestick patterns to generate directional trend signals. Its long condition requires three rising bullish candles and the current low above the moving average. Its short condition requires three declining bearish candles and the current high below the moving average. The author gives a 20 period Wilder smoothed average as an example and says the average type can be changed.

The source defines the candle patterns through consecutive candle direction and strictly rising or falling closes, then returns a positive or negative signal when the relevant average filter also holds. No market, timeframe, backtest, performance results, exit rules, position sizing, or execution assumptions are provided. The post presents this as a reusable indicator for trend trading, so its signal logic is clear but its predictive value and practical risk remain untested in the document.

Key ideas

• The long signal requires three consecutive bullish candles with rising closes and the current low above a moving average.
• The short signal requires three consecutive bearish candles with falling closes and the current high below a moving average.
• The moving average type is configurable, with Wilder smoothing over 20 periods given as an example.
• The indicator returns directional signals but does not define exits, sizing, or performance evidence.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.