Stalled Pattern candlestick pattern

The Stalled Pattern is a three candlestick pattern that occurs during the uptrend and theoretically indicates the bearish reversal. It is also known as a 'deliberation' pattern because from the third candle, buying power is decreasing and sellers are gaining strength, as indicated by the long up shadow.

The Stalled candlestick pattern predicts a bearish reversal ONLY if the candle following the pattern falls below the midpoint of the 2nd candlestick body. If not, there is more likely to be a brief period of bullish weakening, but not a bearish reversal.

This pattern is similar to the Three White Soldiers: the difference is the third candlestick. During the first two candlesticks, we see buying pressure and price appreciation, but the third candlestick in the Stalled pattern indicates the easing of this pressure and the increasing strength of the sellers. The pattern signals that the bullish push is weakening, at least for a while.

Construction

1st

• continuation of uptrend
• long green body

2nd

• long green body
• open price is above 1st candlestick
• close price is above 1st candlestick^①
• close price in midpoint of 3rd candlestick^②

3rd

• green body shorter than previous two candlesticks
• candlestick up shadow at least 2 times longer than body
• open price is around close price of 2nd candle
• close price should be close to closing price of 2nd candlestick

The candlestick that follows the pattern is used to confirm the triggered pattern and the bearish reversal. Please also check for news about the traded asset.

The Stalled candlestick pattern is best traded as intended in the stock market. Data driven crypto traders will mostly avoid this pattern due to insufficient daily data (not trading advice).

When these patterns occur, long positions should be liquidated or protected, but short positions should not be opened in this situation (not trading advice).

A stop loss order can be placed above the highest price of the pattern (not trading advice).