Candlestick Patterns | Bullish Mat Hold

Bullish Mat Hold

This pattern signals a potential trend.

How to identify.

  1. 1st day is a long white day.
  2. 2nd day is a red day that gaps above the 1st day.
  3. The next two days are small body days which trend lower and stay within the upper range of the 1st day.
  4. The last day is a white day which closes above the previous four day’s range.

Psychology.

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.

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