Bullish Mat Hold
This pattern signals a potential trend.
How to identify.
- 1st day is a long white day.
- 2nd day is a red day that gaps above the 1st day.
- The next two days are small body days which trend lower and stay within the upper range of the 1st day.
- The last day is a white day which closes above the previous four day’s range.
This is a resting pattern for the bulls. The 2nd day still closes at a new high and the 4th day still closes above the 1st day’s open. Bears worry that a reversal in not in the cards this time. Hence, the bullish trend continues on the 5th day.