Reading the market regime before prices move

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After hours
Bearish signal ▼ · 40 pattern

Deliberation

Deliberation

Deliberation: three rising candles, but the third has a small body (like a star or spinning top) and opens with a slight gap above the second. The momentum slowdown on the third candle shows buyers starting to hesitate, an early warning that upside strength is running out.

40
PATTERN ID
Signal Bearish ▼
Reliability ★★★☆☆
Win Rate 58%
Expected move −3–7%
Timeframe Daily
Confirmation Required

The short answer

What is a Deliberation candle?
Deliberation (Deliberation): three rising candles, but the third has a small body (like a star or spinning top) and opens with a slight gap above the second. The momentum slowdown on the third candle shows buyers starting to hesitate, an early warning that upside strength is running out.
How do you spot a Deliberation candle?
Two large bullish candles in a row (strong momentum). The third candle has a small body and opens near the second's high. The shrinking third body is the core of the pattern (a slowdown).
Is the Deliberation candle bullish or bearish?
A bearish reversal pattern made of 3 candles. Confirmation: required. Reference success rate: 58%. You can spot it on live daily candles for any symbol in the members' technical terminal. Open the technical terminal →
Pattern illustration
Two strong rising candles ← a small third that reveals slowing momentum

How to identify the pattern

Step-by-step checks
  • Two large bullish candles in a row (strong momentum)
  • Third candle: small body that opens near the second's high
  • The shrinking third body is the core of the pattern (a slowdown)
  • Needs confirmation from a later bearish candle

Trading psychology

The power struggle between buyers and sellers
After two strong buying pushes, buyers fail to produce a third candle of the same strength. The small body points to hesitation and early profit-taking. It is not a confirmed reversal, but a warning that upside fuel is running low and caution is needed.

Outlook and confirmation

Entry conditions and expected price move
Needs confirmation in the next session
An early reversal warning (~58%) that needs bearish confirmation. A pullback of 3-7% is possible. Tightening a stop-loss is the more cautious reading than shorting right away.
Ideal setting for the pattern
Top of a mature uptrend
Recommended timeframe: daily

Where to find it on the platform

  • Technical terminal for members
    Shows the daily-timeframe candles for any symbol on the platform's list. You identify the pattern by eye: the terminal does not name it.