For a better understanding of this article, you should already know what Japanese Candlesticks are and all their features; for this reason, we suggest you to read this introductory article to Japanese Candlesticks: Japanese Candlestick Chart ( So that you can understand also the Ratings given to the Candlestick Patterns for the “quality” of the signal and for their frequency to “appear” on Charts).
Let’s analyze now the following Candlesticks Pattern: “Advance Block Pattern”.
Advance Block Pattern
– It occurs during an Uptrend; confirmation is required by the candles that follow the Pattern.
– Normally it should be a signal of Bearish reversal of the current Trend.
– The Pattern is composed by Three White Candles, that gradually have a shorter Real Body.
– The Open of the Second and Third Candle should be within the Real Body of the Previous Candle.
– The Close of the Candles are often far away from their respective Highs.
– The Shadows of the Candles are gradually taller, especially the Upper Shadows of the Last Two Candles.
– The confirmation of the Bearish Reversal could be from the next Candles, when one of them (While is falling) overcomes the midpoint of the Real Body of the First Candle.