| Advance Block |
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Pattern: reversal
Reliability: moderate
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Identification
Three white days occur. Each successive day opens within the body of the previous day and closes above the previous day. The bodies of the candles get progressively smaller with the upper shadows of day 2 and 3 getting progressively longer.
The Psychology
Each successive candle is smaller and closes further from its intraday high. This isn't necessarily extremely bearish, but it's certainly less bullish. It hints that the bounce is losing steam because each attempt to rally intraday fails by a greater degree.
The bearish Advance Block is similar to the bullish Three White Soldiers and bearish Deliberation.
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