Stalled Pattern / Deliberation
Reference values based on Bulkowski's "Encyclopedia of Chart Patterns". Data is primarily from U.S. markets and may differ for other markets.
Three consecutive bullish candles similar to Three White Soldiers, but the third candle becomes a spinning top (very small body). It indicates hesitation in the advance and suggests the trend is losing momentum. The extremely small body of the third candle represents exhausted buying power. Like the Advance Block, it is one of the false patterns for Three White Soldiers.
Enter short at the next candle's open after the third spinning top confirms. Verify the third candle's body is clearly smaller than the first and second.
Project the combined range of the three bullish candles downward from the third candle's close. Or target near the first candle's open.
Place a stop-loss slightly above the third candle's high.
A sharp volume decline on the third candle indicates buying exhaustion and enhances pattern reliability. Conversely, increased volume with a small body suggests rising selling pressure.