What it is
The Advance Block is a three-candle bearish reversal pattern that appears during an uptrend. It consists of three consecutive bullish candles, but each successive candle shows weakening momentum — shorter bodies and longer upper shadows.
While Three White Soldiers represents strong bullish continuation, the Advance Block is its warning cousin. The pattern looks bullish at first glance (three green candles), but the shrinking bodies and growing upper wicks reveal that buyers are losing steam with each new high. Sellers are beginning to step in at higher prices.
The psychology
The Advance Block reveals creeping bearish pressure beneath a bullish surface. Candle 1 is a strong bullish candle — no issues, the uptrend is healthy. Buyers are in control and close near the high.
Candle 2 opens within Candle 1's body and closes higher, but the body is smaller and an upper shadow appears. Bulls are still pushing higher but encountering resistance. Some sellers are defending these levels. The body is shorter because the close was pulled back from the high.
Candle 3 continues higher but the body shrinks further and the upper shadow grows even longer. This is the tell — buyers push price up intraday but sellers keep rejecting the highs. The diminishing bodies show decaying bullish momentum. A reversal or correction is likely.
Identification
- 01Prior uptrend — Pattern must appear during a rise
- 02Three consecutive bullish candles — Each closing higher than the last
- 03Progressively shorter bodies — Each candle's body is smaller than the previous
- 04Growing upper shadows — Each candle shows increasing rejection at the highs
- 05Each opens within prior body — Opens within the body of the preceding candle
- 01Decreasing volume on each successive candle — Confirms fading participation
- 02Very long upper wick on Candle 3 — Shows aggressive selling at the high
- 03Near major resistance — Adds confluence for reversal
- 04Bearish divergence on RSI — Momentum already weakening
- 01Bodies not shrinking — If all three have similar-sized bodies, it may be Three White Soldiers instead
- 02No upper shadows — Without wicks showing rejection, it's not an Advance Block
- 03No prior uptrend — Pattern needs trend context
- 04Third candle is very small — Could be a Deliberation pattern instead
Execution framework
Conservative: Wait for bearish confirmation (next candle closes below Day 3's low).
Aggressive: Enter short at close of Day 3 with tight stop.
Above the high of the third (smallest) candle. If buyers can push above that high, the bearish signal is negated.
T1: The open of the first bullish candle in the pattern. T2: Previous support level or swing low. The pattern signals weakening momentum rather than aggressive reversal, so conservative targets work best.
Minimum 1:1.5. Advance blocks suggest fading momentum rather than sharp reversals, so don't overextend targets.
Context matters
The Advance Block is a subtle warning pattern. Unlike dramatic reversals, it shows the gradual deterioration of buying pressure. Many traders miss it because they see three green candles and assume bullish continuation.
- 01At major horizontal resistance after a sustained uptrend
- 02With decreasing volume across all three candles
- 03When bearish divergence is visible on RSI or MACD
- 04Near a Fibonacci extension or measured move target
- 05On daily or weekly charts
- 06After an extended rally without meaningful pullbacks
- 01In a strong uptrend with no resistance overhead
- 02With increasing volume on each candle (more bullish)
- 03On very low timeframes where bodies and wicks are noisy
- 04In a consolidation with no clear trend
- 05If the upper shadows are minimal
- 06Early in a new uptrend (momentum still building)
Three bullish candles with decreasing body sizes and increasing upper wicks. Classic exhaustion pattern.
Compare the full pattern set
Use the library to compare similar structures before deciding what the chart is actually building.