Advance Block Bearish

 

Pattern: Reversal Trend: Bearish Reliability: Moderate

 

How to Identify it

• Three long white days occur, each with a higher close than the previous day
• Each day opens within the body of the previous day and closes near the high of the day
• Each days body is significantly smaller than the previous days body
• The second and third days should exhibit long upper shadows

What it Means

In an uptrend three long days occur with consecutively higher closes. This pattern is similar to the Three White Soldiers pattern, however, in this case, each successive day is weaker than the one preceding it. This suggests that the previous rally is losing strength, and preparing for a reversal.