Ladder Bottom

Bulkwoski compared trying to find this candlestick pattern on a chart like flipping a coin five times with it landing on heads all five times.

The Ladder Bottom candlestick pattern is pretty rare, and that’s likely due to it being a five candle formation with specific rules and requirements.

The first three candles in the Ladder Bottom pattern formation should each be bearish candles that each have lower opening and closing prices.

The fourth candle is another bearish candle that should have a noticeable upper wick. It can be a small Doji candle or an Inverted Hammer, all that matters is that it’s bearish and contains an upper wick.

The fifth and final candle should be a bullish candle whose body gaps up above the previous candle (4th candle.) It does not matter where this candle closes but it should give you some indication that price is about to head north, such as by having a long upper wick or a large body that closes above the other candles.

The downside to using this pattern for trading is that it has only a 56% bullish accuracy according to Bulkwoski.

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