The Stalled Pattern Bearish is a bearish pattern represented by three candles.

During an uptrend, the first candle is increasing and has a long body. It is followed by a second candle, also increasing and has a shorter body. Finally, the last candle still increases but doesn’t break the previous high, then creates a resistance.

The essence of this pattern is that the bullish trend loses positive momentum and creates a resistance that the price is struggling to break. Then, the price is very likely to perform a pull-back or start a bearish trend.

Usually, traders use this pattern to sell positions or to open a short.