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Matching low is a bullish trend reversal candlestick pattern showing the reversal of an existing downtrend. The pattern usually forms at the end of strong downtrends and somewhat resembles bullish ladder bottom pattern. This is a two candlestick pattern formed of two bearish (black or colored) candlesticks.


The requirements of a bullish matching low candlestick pattern include,

• The pattern should be formed in an established downtrend.
• The first day is a long bearish day closing at a new low.
• The second day is also a bearish day where price closes at or is very close to the first day's closing price.

Bullish matching low candlestick pattern occurs when prices tend to bounce back after touching a short-term support level. The first day candlestick shows that the downtrend is still strong. On the second day the prices open above previous close, but close at previous close. This indicates that the support level has been successfully tested and it is now time for the shorts to cover their position. On the next trading day, the price can reverse to form an uptrend.

Matching low is a moderately reliable candlestick formation. Traders can enter trades after the confirmation of trend-reversal, which can be a bullish candlestick, gap above opening or higher close on the next trading day.

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