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Bullish deliberation is a bullish trend reversal candlestick pattern indicating the possible reversal of an existing downtrend. The pattern resembles three black crows pattern, but the latter is a bearish candlestick formation. Bullish deliberation is a three candlestick pattern, formed of all black or colored candlesticks.


Requirements of a bullish deliberation candlestick pattern include,

• The pattern should form at the bottom of a significant downtrend.
• The first day is a long bearish day.
• The second day is also a long bearish day, opening within the body of the first candlestick and closing at a new low.
• The third day is also a bearish day characterized by a small bearish candlestick which opens near of a gap below the second candlestick and closes at a new low.

Although the formation seems bearish (and the existing downtrend can continue), a close look would reveal that the trend is weakening. The long bearish candlesticks on the first two days indicate that the bearish trend is strengthening, and also contribute to a gap down opening on the third trading day. But the formation of a small candlestick on the third day indicates that the downtrend is losing momentum; at least temporarily. There is a sign of indecision, hence the name deliberation, and as prices are at low levels, trend reversal is possible.

Bullish deliberation pattern is a weakly reliable pattern; and is less popular than bearish deliberation pattern. Reliability of formation increases with previous downtrend and with shortening of real-body of third day candlesticks (doji and star formations). Most traders do not take bullish deliberation as a true reversal pattern, but as a short-term price change indicator. Traders use the pattern to lock profits and to move up the stop-losses.

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