The Ultimate Guide to Advance Block Candlestick Patterns

Last updated: January 4, 2024

Advance Block Pattern

Advance block candlestick patterns are a type of reversal pattern made up of three candles, which may indicate weakness in the current bullish trend:

The advance block candlestick pattern is very similar to the three advancing white soldiers candlestick pattern, except the second and/or third candlesticks show signs of weakening

Chart

General Identification & Interpretation

Steve Nison is credited with bringing Japanese candlestick charting to the West. In his book "Japanese Candlestick Charting Techniques" he describes advance block patterns with the following characteristics:

Typical characteristics

• Pattern similar to the three advancing white soldiers candlestick pattern, but where the second and/or third candlesticks show signs of weakening (for example, longer shadows or progressively smaller real bodies)

Examples of use as a trading indicator

• Could signal that an uptrend is weakening
• Not normally used to short, used more frequently to protect long positions

Other interpretations

• When the last candlestick in this pattern fails to advance any further, the pattern may resemble a stalled candlestick pattern.

More for beginners

Check out our quick start guide to candlestick charting for more information if you are new to candlestick charting!