Deliberation

The Deliberation candlestick pattern is closely related to the Advanced Block pattern. While both candlestick patterns are made up of three bullish candles moving in the direction of the trend, the Deliberation pattern has strict requirements on candle body height, but no requirements for the candles wicks, which is the case with the Advanced Block pattern.

In addition to this, the Deliberation candle pattern is more accurate than the Advanced Block pattern, according to Bulkowski, where the Deliberation pattern ranks in 2nd place as a bullish continuation pattern.

While this candlestick pattern is generally regarded as a bearish reversal pattern, testing reveals that the Deliberation pattern acts as a bullish continuation pattern around 77% of the time. But this revelation isn’t really all that huge, seeing as it’s much more likely for price to close above the top of the pattern and continue upwards than it is for price to drop down and close below the pattern.

The first two candles in the Deliberation pattern are full-bodied bullish candles. The second candle must open within the body of the first, but still close higher. The third candle is typically shorter, makes a gap to the upside and then continues to make a higher close.

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