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Thursday, March 12, 2009

Bullish Mat Hold Candlestick Formation

Bullish mat hold is a bullish trend-continuation candlestick pattern, which indicates continuation of an uptrend ever after some bearish days. This is a rare but highly reliable 5 candlestick pattern which has strong resemblance to bullish rising three methods pattern; and is thus often not easy to identify. The major difference is in the position of middle candlesticks; they are higher than their counterparts in rising three methods.


The requirement of bullish mat hold candlestick formation include
  • The formation should form after a noticeable uptrend.
  • The first day should be a long day with high bullish activity.
  • The second day candlestick should be a small real bodied candlestick which gaps away from first day candlestick and should be bearish in nature.
  • The third and fourth day candlestick should also be small bodied ones and should be stay within the upper range of first day candlestick
  • The fifth day should be noticeable with a long white (bullish/colorless) candlestick closing on a new high.
Bullish mat hold pattern develops as the bears continue to fail to make any significant success – creating low less than first day’s range. This enhances the confidence of bulls and prices are taken to new highs. Although the bullish mat hold formation is considered as a highly reliable formation, confirmation is still suggested which can be a bullish candlestick of upside gap on new day.

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posted by NobleTrading at 8:55 AM

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