Class aptent sociosqu ad litora torquent per conubia nostra, per inceptos himenaeos. In tempus, erat eget tincidunt elementum mauris quam laoreet erat.
This pattern consists of three consecutive white candlesticks with consecutively higher closes in an uptrend.
How to identify
Three consecutive up days (1st two long days) with higher opens and closes each day.
3rd day gaps above the 2nd day’s close. Some texts show the 3rd day as closing near the 2nd day. HotCandlestick.com diverges from this philosophy since any small body candlestick on the 3rd day shows weakness.Some might argue that the greater the gap above the 2nd day, the more likely a short term pullback is in order. Granted, a large gap may signal a continuation of the uptrend, but the opportunity to capitalize on a profit for an immediate pullback prior to the return of the uptrend should not be ignored. Stops should be in place when trading in order to minimize potential losses.
3rd day is usually a spinning top or star (small body).
This pattern is very similar to the Bearish Advance Block. The key difference is that all of the weakness shows up on the 3rd day.
The first two days have powerful upward moves. The quick change in sentiment opens the window for daytraders to initiate shorts or capture profits.