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Bullish Ladder Bottom

Daily Charts:   25 found in last 10 days.   Updated Wed Jul 28 18:16:42 2010 CST . Click here to see them.

Weekly Charts:   36 found in last 10 weeks. Click here to see them.

Bullish Ladder Bottom

This pattern signals a trend...
How to identify...
Similar pattern(s)...
Reversal
  1. 1st three days are long black days with lower opens and closes each day.
  2. 4th day is a black day with an upper shadow.
  3. The last day is white that opens above the body of the 4th day.

Psychology...

In a downtrend and after moving solidly down for three consecutive days, the bears feel in control. The 4th day prices trade near the open of the previous day, but close at another new low. This draws attention to the bears who realize that markets do not go down forever. If the next day opens higher, then shorts will lock in profits. And if volume is high, then a reversal has probably occurred.





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