The Advance Block Candlestick Pattern – Backtest and Analysis

For a long, candlestick patterns have guided the decisions of traders. They still do so today. One of them is the Advance Block candlestick pattern. Today, we’ll discuss how to spot and trade the Advance Block on the charts.

Advance Block Definition and Meaning

The Advance Block pattern is a bearish reversal candlestick pattern that is made up of three bullish candlesticks. Most times, this pattern appears at the end of a bullish trend.

Theoretically, only a bearish reversal should follow this pattern. But of course, no pattern is correct all the time. So there are times when this pattern merely acts like a trend continuation pattern. Regardless, this rare pattern, when it does appear, makes up the backbone of many traders’ trading strategies, so it is still worth looking at.

Advance Block graphical presentation

To better understand what the pattern looks like let’s show you a graphical presentation of Advance Block.

The pattern can look like this:

If we zoom out such a pattern can take a form like this:

Advance Block candlestick pattern backtest

In order to backtest candlestick patterns you need to set specific rules and definitions. That requires both time and effort, but don’t worry: it’s already done for you!

We have defined ALL 75 candlestick patterns and put them into strict trading rules that are testable. Each single candlestick pattern is backtested and includes rules, settings, statistics, probabilities, and performance metrics.

Even better, you get the rules with Amibroker or Tradestation/Easy Language code (in addition to plain English if you like to code yourself, like putting it into a Python trading strategy, for example).