CDLADVANCEBLOCK (CDLADVANCEBLOCK)

CDLADVANCEBLOCK (Advance Block) is a bearish reversal pattern that appears during uptrends, signaling that the advance is 'blocking' or stalling. The pattern consists of three consecutive bullish candles, similar to Three White Soldiers, but with key weakness: Each successive candle has a progressively smaller body, shows diminishing upward progress, and may have longer upper shadows. The first candle is strong bullish, the second opens within the first's body and advances but with a smaller body, and the third continues higher but shows even weaker momentum with an even smaller body and potentially long upper wick. This deceleration pattern shows buyers losing strength despite continued attempts to push higher.

Advance Block warns that an uptrend is exhausting before a clear reversal occurs, making it valuable for taking profits or preparing short positions. Unlike Three White Soldiers (strong continuation), Advance Block shows weakening momentum - each 'soldier' is weaker than the last. Crypto traders use this pattern to exit long positions or tighten stops during rallies that are running out of steam. Enter short positions after the next candle confirms by closing below the third candle's low, especially with increasing volume. The pattern is most reliable after extended rallies at resistance zones or round-number psychological levels. Combine with RSI overbought (>70), bearish divergence on MACD (price rising but MACD falling), and declining volume during the pattern formation. Stop losses go above the third candle's high.