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Bearish deliberation is a bearish trend reversal candlestick pattern indicating the possible reversal of an existing uptrend and the start of a new downtrend. The pattern resembles bearish advance block pattern and three white soldiers pattern (which is a bullish formation). Bearish deliberation is a three candlestick pattern, formed of all bullish (white or colorless) candlesticks.


Requirements of bearish deliberation candlestick pattern include:

• The pattern should form at the top of a significant uptrend.
• The first day is a long bullish day closing at a new high.
• The second day is also a long bullish day opening within the real-body of the first candlestick and closing above the first candlestick, forming a new high.
• The third day is also a bullish day characterized by a small candlestick which opens near or a gap above the second day's candlestick.

The long bullish candlesticks of the first two days indicate that the bullish trend is in full swing. But the formation of a small candlestick on the third day indicates that the bulls are losing their strength; at least temporarily. This is a sign of indecision, hence the name deliberation, and as prices are at high levels, trend reversal is possible.

Bearish deliberation pattern is a moderately reliable candlestick formation. Reliability increases with previous uptrend and with shortening of real-body of the third day candlestick. Bearish deliberation pattern is not usually considered a true reversal pattern, but rather as an indicator of possible correction/short-term price decline. Many traders use the pattern to liquidate long positions rather than open short positions. Confirmation of trend-reversal is needed, which can be a bearish candlestick, a lower close or a large gap down opening on the fourth trading day.


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