Three bullish candles keep pushing to higher highs, yet their bodies shrink and their upper wicks stretch out. Buyers keep advancing, but each step gets heavier. A three-candle sign of fatigue at the end of a rally.
The Advance Block is a three-candle pattern that shows three bullish candles still pushing to higher highs while each step of that advance grows heavier.
Like Three White Soldiers, all three candles are bullish, and both closes and highs keep rising. But where Three White Soldiers tells a story of powerful continuation, the Advance Block does not. As you move from the second to the third candle, the bodies shrink and the upper wicks stretch out.
The advance has not stopped. Yet each step is reaching less and less. Every time buyers push up, sellers press back from above and drag the close down off the high. When this shape appears at the tail end of a long rally, it is a warning that the move is running short of breath.
How to Read
NASDAQ:AAPL
The name Advance Block describes a path that narrows as it goes: the way ahead grows blocked, cramped, hard to push through. The road still climbs, but it tightens further up. Buyers try to press forward, while resistance overhead presses back a little harder with every step.
The Advance Block does not guarantee a reversal. It is a caution signal of slowing momentum, a shape best read as a cue to take profit or raise your guard.
How to Read
NASDAQ:AAPL
Members Only
Full access is reserved for members of the library.