Descent Block - Candlestick Reversal Pattern
Descent Block Candlestick Definition
The descent block candlestick pattern is a bullish reversal signal. This pattern materializes after a clear downtrend is in place. The formation consists of three black (red) candlesticks and on first glance resemble three black crows. However, remember that three black crows occur in up trends, while the descent block occurs in downtrends. The first candlestick in the descent block formation is a long red candlestick with very little lower shadow and closes near its low. The next two candlesticks in the formation close lower, but both have lengthy lower shadows. These lower shadows are an early indication that the downtrend is nearing its end. Another thing to note is that the second and third candlestick open within the body of the preceding candle.
Descent Block Candlestick Charting Example
While the descent block is classified as a bullish signal, it does not have a high probability of calling market bottoms. Traders should however use the descent block as an early sign to lock in profits and or move up protective stops.
