Pattern Detail

Bearish Deliberation Block

Three-candle bearish reversal after a rally: two strong up candles, then a small gapped-up candle where the advance stalls.

A real Bearish Deliberation Block on NQ daily bars, Aug 12, 2008. Price then followed through 1.6% over the next 5 bars. The bright candles are the pattern; the dimmed bars are surrounding context.
A real Bearish Deliberation Block on NQ daily bars, Aug 12, 2008. Price then followed through 1.6% over the next 5 bars. The bright candles are the pattern; the dimmed bars are surrounding context.

Shown only on the markets where this pattern occurs.

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How to read this

Everything here is in R, the setup's own risk. 1R is the distance from the entry (the pattern's closing price) to where it would be proven wrong — its highest high over the 3 bars that form it. So "offered 2R" means price ran twice that distance in your favor at some point before the stop. It does not assume you took profit there: a target is a strategy choice.

Room offered (≥ 1R)

42.9%

Too few to trust

Offered at least 1× its risk before the stop, vs 40.9% for a random short entry (+2.0 pts).

Move size vs normal

2.21×

Realized range over the next 20 bars vs a random bar. Precedes a bigger move.

Typical room (20-bar)

1.01R

Average run in favor (capped at 3R), vs 1.07R for a random short entry.

Summary

Offered ≥1R 42.9% of the time vs 40.9% for a random short entry. The 2.0-point gap is no bigger than the ±36.4-point margin of error you would get by chance from 7 occurrences. Not a reliable edge.

Room offered, this setup vs a random short entry

Only 7 occurrences. The breakdown below is shown in full, but a sample this small is anecdotal, a hint, not a measured edge. That is usually a limit of available history, not a flaw in the pattern. For a firmer read, try a lower timeframe or a more active instrument.

Outcome This setup Random entry Edge
Offered ≥ 1R 42.9% 40.9% +2.0
Offered ≥ 2R 28.6% 26.8% +1.8
Offered ≥ 3R 28.6% 18.8% +9.8
Stopped < 1R 57.1% 56.5% +0.7
Went sideways 0.0% 2.7% -2.7

7 occurrences · 356,238 random-entry controls · 20-bar horizon

A deliberation block is a rally that hesitates at the very top. Two strong up candles push the advance higher, with the second opening inside the first and closing above it. Then a small candle gaps up but goes nowhere, a tiny body, a doji, or a spinning top. After all that momentum, buyers stop to deliberate. That pause near the high often marks where the move runs out.

How to spot it

  • The market is rising into the pattern.
  • The first two candles are up (green) candles that keep the rally going.
  • The second opens inside the first body and closes higher than it.
  • The third candle gaps up above the second but is small, a tiny body, a doji, or a spinning top.
  • That small stalled candle after two strong ones is the tell.

The dashed box on the chart above marks the three candles on a real occurrence, with the advance before and the move after.

The psychology

The first two candles are the rally at full stride. Two strong up bars, the second opening inside the first and closing above it, show buyers in clear control and still finding room to push higher. Nothing in those bars suggests trouble. Then the third candle gaps up, which keeps the direction higher, but it goes nowhere from there. A tiny body, a doji, or a spinning top prints right where the move should have driven on.

That small candle is the deliberation traders watch for. Buyers had the gap in their favor and could not turn it into progress. The advance did not reverse, but it lost its force at the very point where momentum should have been strongest. After two confident up bars, a sudden shrink in range looks like the buyers carrying the move pausing to think, and hesitation at the high is often where a rally loses its grip before sellers test the downside.

A pause at the top is not yet a reversal, and the numbers below measure how often it becomes one.

Does it actually work?

A pattern is a setup, not a trade, so the honest question is not “did it win” but “how much room did it tend to offer before it was proven wrong.” The tabs below answer that across five futures markets (Nasdaq, S&P 500, gold, crude oil, natural gas) and seven timeframes from one minute to one day.

For each occurrence we measure the room the move offered in units of the pattern’s own risk, then set it against what a random entry on the same market would have done. When the pattern offers more room more often than chance, that shows up as a real edge. When it does not, the page says so plainly.

Read it with the sample size in view. On the faster timeframes a pattern can fire thousands of times, enough to trust. On the daily chart it is far rarer, so treat those numbers as a hint rather than a verdict. Thin samples are flagged for you on the page.

How we measured it

  • Entry is the close of the final candle of the pattern.
  • One unit of risk, 1R, is the distance from that close up to the pattern’s invalidation point: the highest high of the three candles that form it. If price trades through there, the setup is wrong.
  • We then follow the next 20 bars and record how far price ran in your favor, in multiples of that risk, before the stop was hit.
  • Every figure is set against a random entry on the same market and timeframe, so the market’s own drift is accounted for.
  • No profit target and no position sizing. Where you take profit is a strategy choice; this measures only the room the pattern tends to give.

What this page does not cover

  • Volume on the pattern’s candles.
  • Whether the pattern forms at a meaningful resistance level.
  • Pairing it with a trend filter or a confirming signal.
  • A profit target or position sizing. We use the pattern’s own invalidation point as the stop to define risk, but where you take profit, and how much you put on, are strategy decisions this page leaves to you.

Sample Bearish Deliberation Block Firings (7)

Based on data through Apr 29, 2026

Time Risk (pts) Room offered Result
Jun 3, 2024, 8:30 AM CDT 12.5 0.00R Stopped
Jul 20, 2022, 8:30 AM CDT 8.75 0.00R Stopped
May 23, 2022, 8:30 AM CDT 16.75 3.00R Ran ≥1R
Jan 28, 2021, 8:30 AM CST 16.75 0.00R Stopped
Mar 13, 2020, 11:50 AM CDT 25.75 3.00R Ran ≥1R
Nov 18, 2008, 2:25 PM CST 8.25 1.09R Ran ≥1R
Jun 5, 2008, 9:00 AM CDT 1.75 0.00R Stopped

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