Bullish Ladder Bottom Pattern
BULLISH LADDER BOTTOM PATTERN (BLBP)
the market will not go down forever
1. Market is on a downtrend;
2. Just like the Bearish Three Black Crows Pattern, we see 3 long black sticks distinguished by consecutive lower opens;
3. Day 4 has a black candlestick with an upper shadow; and
4. On Day 5, we see a white stick opening above the body of Day 4.
There is downtime for quit a time and this makes the bears happy. Then we see a good move downward where prices start trading above the opening price and close to reaching to the new high of the prior day. But the close is another new low. This is a warning that the market will not go down indefinitely. If profits are good, the shorts may start closing their positions on the next day. If volume is high on Day 5, a bullish trend reversal may have occurred.
1. A confirmation on Day 6 is suggested to confirm that the market has reversed (through a white stick, a large gap up or a higher close).
2. Important Factors: A confirmation on the sixth day is suggested in the form a white candlestick, a large gap up or a higher close, to be sure that the market has reversed.