Stalled Pattern

 

  • Appears a group of three white candlesticks with the first two white candlesticks possessing long real bodies whereas the third white candlestick possesses a small a real body.
  • The second candlestick must close higher than the first candlestick and usually the third candlestick closes higher than the second candlestick, but not that far from the previous day’s close.
  • The third candlestick can either gap away or ride on the shoulder of the second candlestick (usually forms a Doji star, Spinning Top, or Shooting Star)
  • Also known as the Deliberation pattern
  • Effect: Signals that the bull’s strength has been temporarily exhausted and the stock may experience correction or a reversal
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