Checkmate
Checkmates occur when price becomes locked in a narrow trading range preceding a reversal in direction. In a typical bearish checkmate (right), an uptrend meets a resistance level that is tested and then rejected due to consequent pressure from holding the level. In these cases, the checkmate begins as the first candle in the range reaches a high that the pressure from bulls is unable to surpass. Price remains deadlocked in a tight trading range before the range is broken with a long bearish candlestick, indicating that the reversal has begun. As an entry signal, this pattern requires confirmation from one or two strong bearish bars
In a bullish checkmate (right), the opposite occurs, typically at a support rather than resistance level. The long lower wick of the first pinbar in the red box establishes a low that the bears cannot achieve; price is trapped thereafter in a narrow trading range, the checkmate, until bulls successfully reverse the trend. The tall white bar immediately after the box confirms the bullish reversal.