Ladder Bottom Bullish

 

Pattern: Reversal Trend: Bullish Reliability: Moderate

 

How to Identify it

• Three black days occur with consecutively lower opens and closes
• The fourth day is black with some upper shadow
• The fifth day is a white day that opens above the body of the fourth day

What it Means

In a considerable downtrend, the shorts may have a chance to sell and take in any profits by the fourth day. This results in a gap upward on the fifth day. If the body of the fifth day is long, or the volume of trading is high, a bullish reversal has likely occurred.