DEFINITION of 'Stalled Pattern'

The stalled pattern, also known as the deliberation pattern, is a candlestick chart pattern that occurs during an uptrend and signals a bearish reversal. The pattern consists of three white candles that meet a specific set of criteria.

BREAKING DOWN 'Stalled Pattern'

The stalled pattern consists of three white candles, where:

  • The third candle has a shorter real body than the first or second candles.
  • Each candle’s open and close is higher than the previous candle.
  • The third candle has a short real body or doji, a tall upper shadow, and an open that’s near the close of the second candle.

The chart pattern alone indicates indecision in the market, which is why it’s also known as a deliberation pattern. While a bearish reversal isn’t imminent, the indecision could suggest limited upside for traders looking to turn a quick profit.

The chart pattern could signal a bearish reversal when the candle following the stalled pattern moves below the midpoint of the second candle’s real body. When this occurs, traders may want to consider taking a profit or cutting the losses on their position.

Traders may also look for confirmations of a reversal in future candles following the stalled pattern, such as a bearish engulfing. The pattern may also appear within a larger chart pattern that spans several days or weeks – such as a head and shoulders.

  1. Up/Down Gap Side-by-Side White ...

    The side by side white lines pattern is a three-candle continuation ...
  2. On Neck Pattern

    The on neck pattern occurs when a long bearish candle is followed ...
  3. In Neck Pattern

    The in-neck pattern is a two-candle bearish continuation pattern ...
  4. Ladder Bottom

    The ladder bottom is a five-candle bullish reversal candlestick ...
  5. Hanging Man

    A bearish candlestick pattern that forms at the end of an uptrend. ...
  6. Morning Star

    A bullish candlestick pattern that consists of three candles ...
Related Articles
  1. Investing

    Tales From The Trenches: Location Is Everything

    When a candle pattern re-occurs near a moving average, it may indicate future support or resistance.
  2. Trading

    Advanced Candlestick Patterns

    Learn how to identify and trade the island reversal, kicker, hook reversal and three gap advanced candlestick patterns.
  3. Financial Advisor

    Using Candles To Understand Market Behavior

    The conventional interpretation of candle charts focuses on the many different candle formations, but Dan Gramza shows how he uses candle charts to identify market behavior. This includes how ...
  4. Trading

    Most commonly used forex chart patterns

    These chart patterns provide entries, stops and profit targets that can be easily seen.
  5. Trading

    Candlesticks Light The Way To Logical Trading

    Crowd psychology is the reason this technique works. Find out how to make it work for you.
  6. Trading

    Candlesticks and Oscillators for Successful Swing Trades

    Take advantage of short-term price moves by pinpointing reversals.
  7. Trading

    The S&P 500 is starting to look bearish

    After creating a bearish candle last Friday, the S&P 500 is now vulnerable to a downside move.
  8. Trading

    The 5 Most Powerful Candlestick Patterns

    Statistics show unusual accuracy for the buy and sell signals of certain candlestick patterns.
  1. How are Three Black Crows patterns interpreted by analysts and traders?

    Understand the basics of the three black crows pattern and how analysts and traders interpret this bearish reversal pattern ... Read Answer >>
Hot Definitions
  1. Gross Margin

    A company's total sales revenue minus its cost of goods sold, divided by the total sales revenue, expressed as a percentage. ...
  2. Inflation

    Inflation is the rate at which prices for goods and services is rising and the worth of currency is dropping.
  3. Discount Rate

    Discount rate is the interest rate charged to commercial banks and other depository institutions for loans received from ...
  4. Economies of Scale

    Economies of scale refer to reduced costs per unit that arise from increased total output of a product. For example, a larger ...
  5. Quick Ratio

    The quick ratio measures a company’s ability to meet its short-term obligations with its most liquid assets.
  6. Leverage

    Leverage results from using borrowed capital as a source of funding when investing to expand the firm's asset base and generate ...
Trading Center