Stairs At Bottom/Top

What Is Ladder Bottom/Top’

Downstairs is a five candle bullish reversal candle patterns. The top of the stairs in five-candle bearish reversal candle patterns.

Smashing Down The Ladder From The Bottom/Top’

Downstairs is a bullish reversal pattern with the following characteristics:

  • The market is in a downtrend.
  • The first, second and third candle has a long black body with every opening and closing below the open and close of the previous candle.
  • The fourth candle is black with a short body and a long upper shadow.
  • The fifth candle is white with an open above the body of the previous candle.

The theory is that the downtrend is losing momentum with an inverted hammer candle, which creates an opening for the Bulls to take over and reverse the trend. In addition to not being General, at the bottom of the stairs, as a rule, to be mediocre in predicting a reversal. However, this rule works very well when he makes a correct prediction, with strong price movement above.

Traders should use a ladder in combination with other technical indicators to predict bullish reversals. If the pattern does occur, traders may want to close all short positions and to adjust their stop-loss levels, but bet on long positions require further confirmation using other chart patterns and technical indicators.

At the top of the stairs is a bearish reversal pattern with the following characteristics:

  • The market is in an uptrend.
  • The first, second and third candle has a long white body with each open and close above open and close of the previous candle.
  • The fourth candle is white with a short body and long lower shadow.
  • The fifth candle is black with an open below the body of the previous candle.

The theory is that the uptrend is losing momentum with a hammer or harami candle, which creates an opportunity for bears to take over and reverse the trend. In addition to not very common, top of the stairs, as a rule, to be mediocre in predicting a reversal. However, this rule works very well when he makes a correct prediction, when the prices are lower.

Traders should use the top of the stairs in combination with other technical indicators to predict bullish reversals. If the pattern does occur, traders may want to close all long positions and to adjust their stop-loss levels, but betting on short positions require further confirmation using other chart patterns and technical indicators.

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