Advance Block

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Figure 1.

Figure 1. Advance Block pattern.

Japanese name:sakizumari
Forecast: bearish reversal
Trend prior to the pattern: uptrend
Opposite pattern: none
See Also: Deliberation

Construction:

  • First candle
    • a candle in an uptrend
    • white body
  • Second candle
    • white body
    • the opening price is within the previous body
    • the closing price is above the previous closing price
  • Third candle
    • white body
    • the opening price is within the previous body
    • the closing price is above the previous closing price

 

The Advance Block is classified as a three-line bearish reversal pattern. The first line is a white candle appearing as a long line in an uptrend. It can be any of the following basic candles: White Candle, Long White Candle, Opening White Marubozu, Closing White Marubozu or White Marubozu.

The second line can be formed by any white candle, appearing either as a long or short line. It opens within the body of the first candle and closes above it.

The last, third line, is also any white candle appearing as a long or short line. It opens within the body of the second line and closes above it.

Each subsequent candle body within the Advance Block pattern is shorter than the previous one.

The shadows of the second and third line should be longer than the one of the first line. The pattern indicates that the bulls are weakening. Three white bodies, however, form a support zone and to consider the pattern it needs to be confirmed. Therefore, after pattern appearance the market need to close below the first line. If this is not the case, pattern occurrence should be treated as a false one.

The Advance Block is a very rare pattern.

 

Figure 2.

Figure 2. The Advance Block is supposed to act as a bearish reversal pattern.
On the example, an Advance Block pattern is preceded by a sequence of white candles indicating that the bulls are in control of the stock.
Three white candles characterize the pattern, each being shorter than the previous one. It may seem strange that such configuration acts as a bearish reversal pattern. However it is possible because the candles are getting shorter, and that’s a sign of weakening bullish momentum.
The bears need to move the market below the first line of the pattern. In our example, the pattern occurrence is followed by a battle between the bulls and bears struggling for control of the market. A support zone formed by the pattern itself works. From one side the bulls cannot move the market higher anymore, on the other side the bears are too weak to move the market lower, although the Black Candle breaks a trendline.

 

Figure 3.

Figure 3. An example is presenting a battle between the bears and bulls. We use the "battle" word here intentionally due to the high trading volume involved for the price movement.
An Advance Block pattern is preceded by a long lasting uptrend. The pattern is confirmed on the following day by a Bearish Strong Line pattern and a high trading volume. Surprisingly the bulls on the next day, although the market opens near the closing price of the Bearish Strong Line, are moving the market slightly higher. They form a white body, involving a low trading volume, however. The day after the bulls behaves even more surprisingly and price gaps upward. During the day, a Long White Candle is formed which is also classified as a Bullish Strong Line. The bulls regained control of the stock.
By the way, it would be very interesting to have a look at the intraday candlestick chart to see in details the market behavior.

 

Advance Block statistics

Below you can find some Advance Block pattern statistics calculated by CandleScanner software.

Pattern name: Advance Block
Scanner settings: daily stocks
Group: S&P500
Number of symbols: 502
Date range: 7/1/1995 - 6/30/2015
Time interval: daily candles
Total number of candlesticks: 2,236,421
Number of occurrences (Advance Block): 1,045
Number of occurrences (all candlestick patterns): 638,570
% of occurrences (Advance Block): 0.16 %
Average frequency: 2,140.1
Efficiency statistics (5 candlesticks testing period)

Efficiency NO DATA FALSE LOW MEDIUM HIGH
Number of
Occurrences
0 161 399 217 268
% of
Occurrences
0.00 % 15.41 % 38.18 % 20.77 % 25.64 %

 

Efficiency statistics (10 candlesticks testing period)

Efficiency NO DATA FALSE LOW MEDIUM HIGH
Number of
Occurrences
1 153 326 202 363
% of
Occurrences
0.10 % 14.54 % 31.20 % 19.33 % 34.83 %

 

10 top best performing symbols

Occurrences Statistics 5 candlesticks testing period
(HIGH efficiency)
10 candlesticks testing period
(HIGH efficiency)
Symbol Number of
Occurrences
Average
Frequency
Number of
Occurrences
% of
Occurrences
Number of
Occurrences
% of
Occurrences
FCX 4 1,257.5 3 75.00 % 4 100.00 %
CMCSA 4 1,258.5 1 25.00 % 3 75.00 %
NRG 4 728.3 3 75.00 % 3 75.00 %
SBUX 4 1,258.5 3 75.00 % 3 75.00 %
SNA 4 1,258.5 3 75.00 % 3 75.00 %
YHOO 4 1,209.3 3 75.00 % 3 75.00 %
GD 6 839.0 1 16.67 % 4 66.67 %
ADSK 8 629.3 4 50.00 % 5 62.50 %
BEN 5 1,006.8 1 20.00 % 3 60.00 %
CERN 5 1,006.8 2 40.00 % 3 60.00 %

 

10 top worst performing symbols

Occurrences Statistics 5 candlesticks testing period
(FALSE efficiency)
10 candlesticks testing period
(FALSE efficiency)
Symbol Number of
Occurrences
Average
Frequency
Number of
Occurrences
% of
Occurrences
Number of
Occurrences
% of
Occurrences
ADBE 4 1,258.5 2 50.00 % 2 50.00 %
AET 4 1,258.5 2 50.00 % 2 50.00 %
BIIB 4 1,258.0 2 50.00 % 2 50.00 %
HSY 4 1,258.5 2 50.00 % 2 50.00 %
SIAL 4 1,258.5 2 50.00 % 2 50.00 %
TROW 4 1,258.5 2 50.00 % 2 50.00 %
TSN 4 1,258.5 2 50.00 % 2 50.00 %
AES 5 1,006.8 2 40.00 % 2 40.00 %
COL 5 704.0 2 40.00 % 2 40.00 %
DTE 5 1,006.8 2 40.00 % 2 40.00 %
Pattern name: Advance Block
Scanner settings: daily stocks
Group: S&P500
Number of symbols: 502
Date range: 7/1/2010 - 6/30/2015
Time interval: daily candles
Total number of candlesticks: 614,034
Number of occurrences (Advance Block): 433
Number of occurrences (all candlestick patterns): 166,328
% of occurrences (Advance Block): 0.26 %
Average frequency: 1,418.1
Efficiency statistics (5 candlesticks testing period)

Efficiency NO DATA FALSE LOW MEDIUM HIGH
Number of
Occurrences
0 58 204 88 83
% of
Occurrences
0.00 % 13.39 % 47.11 % 20.32 % 19.18 %

 

Efficiency statistics (10 candlesticks testing period)

Efficiency NO DATA FALSE LOW MEDIUM HIGH
Number of
Occurrences
1 53 164 94 121
% of
Occurrences
0.23 % 12.01 % 37.88 % 21.71 % 28.17 %

 

10 top best performing symbols

Occurrences Statistics 5 candlesticks testing period
(HIGH efficiency)
10 candlesticks testing period
(HIGH efficiency)
Symbol Number of
Occurrences
Average
Frequency
Number of
Occurrences
% of
Occurrences
Number of
Occurrences
% of
Occurrences
BSX 2 629.0 2 100.00 % 2 100.00 %
FCX 2 629.0 2 100.00 % 2 100.00 %
IPG 2 629.0 2 100.00 % 2 100.00 %
NFX 2 629.0 2 100.00 % 2 100.00 %
NLSN 2 556.5 1 50.00 % 2 100.00 %
PCP 2 629.0 2 100.00 % 2 100.00 %
ROST 2 629.0 2 100.00 % 2 100.00 %
SYY 2 629.0 0 0.00 % 2 100.00 %
THC 2 629.0 1 50.00 % 2 100.00 %
VRSN 2 629.0 2 100.00 % 2 100.00 %

 

10 top worst performing symbols

Occurrences Statistics 5 candlesticks testing period
(FALSE efficiency)
10 candlesticks testing period
(FALSE efficiency)
Symbol Number of
Occurrences
Average
Frequency
Number of
Occurrences
% of
Occurrences
Number of
Occurrences
% of
Occurrences
MHFI 3 419.3 2 66.67 % 2 66.67 %
SIAL 3 419.3 2 66.67 % 2 66.67 %
ABBV 2 321.5 1 50.00 % 1 50.00 %
COL 4 314.5 2 50.00 % 2 50.00 %
CVS 2 629.0 1 50.00 % 1 50.00 %
EQIX 2 629.0 1 50.00 % 1 50.00 %
GMCR 2 629.0 1 50.00 % 1 50.00 %
HCBK 2 629.0 1 50.00 % 1 50.00 %
HSY 2 629.0 1 50.00 % 1 50.00 %
MDLZ 2 629.0 1 50.00 % 1 50.00 %

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