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 analyse now the following Candlesticks Pattern: “Advance Block Pattern”.
Deliberation Pattern or Stalled 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: the First One and the Second One have their Real Body longer than the Real Body of the Third Candle.
– The Open and Close of each Candle, should be higher then The Open and Close of the Previous Candle.
– The Third Candle has a short Real Body, it can be also a Doji Candle; moreover, it has an Upper Shadow very tall. Lastly, it has the Open near the level of the Close of the Second Candle.
– 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 Second Candle.