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Two strong advances followed by a hesitant small candle. The market deliberates at the top before reversing.
The Deliberation pattern is a three-candle bearish reversal signal that appears during an uptrend. It consists of two strong bullish candles followed by a small-bodied third candle (often a spinning top or doji) that opens near the second candle's close.
Deliberation is the weaker cousin of the Advance Block. While the Advance Block shows gradually shrinking bodies, Deliberation has two strong candles and then a sudden stall — the third candle 'deliberates,' showing that the market has suddenly become undecided at the top.
Deliberation captures the exact moment when bullish conviction evaporates. Candles 1 and 2 are strong — long bullish bodies, closing near their highs. The uptrend looks healthy and there's no sign of weakness.
Then Candle 3 appears. It opens near Candle 2's close but barely moves. The body is tiny — a spinning top or doji. After two candles of strong momentum, the market suddenly freezes. Buyers and sellers reach equilibrium at the top.
This abrupt shift from strength to indecision is the warning. When a trending market suddenly stalls, it often means the easy money has been made. The small third candle represents traders 'deliberating' — unsure whether to continue buying or take profits. Bearish confirmation on the next candle validates the reversal.
Conservative: Wait for bearish confirmation (next candle closes below Day 3).
Aggressive: Enter short if Day 4 opens below Day 3's close.
Above the high of the third (small) candle. If price pushes above this, the stalling signal is negated and the uptrend may continue.
T1: Open of the first candle in the pattern. T2: Previous support or swing low. Deliberation shows hesitation, not aggressive reversal, so targets should be moderate.
Minimum 1:1.5. This is a hesitation signal - wait for confirmation before taking full size.
Deliberation is a warning pattern rather than a confirmed reversal. It says: 'momentum has stalled.' It always requires bearish confirmation on the next candle to be actionable.
Three bullish candles where the third is a small doji or spinning top. Shows the rally is losing momentum.
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