Bullish Mat Hold Pattern
BULLISH MAT HOLD PATTERN (BMHP)
A failed reversal attempt
1. The market is on an uptrend;
2. Day 1 has a long white stick;
3. Day 2 has an upward gap and a black candlestick;
4. On Days 2, 3 and 4, we see a sequence of small bodies constituting a brief downtrend but staying within the range of Day 1; and
5. Day 5 has a white candlestick which opens with a gap and closes with a new high.
The BMHP appears during an uptrend. This is confirmed by the first long white stick. The following day, prices open with a gap and trade within a small range closing at a lower level. While this is a lower close, it is a new closing high along the uptrend. However, because of this, the bulls now would like to rest while the bears are on the upswing. Ultimately, it can be observed that there was a failed reversal attempt and the upward trend should continue.
1. The BMHP is similar to the Bullish Rising Three Methods Pattern.
2. The reliability is high, but a confirmation is still suggested (through a white candlestick with a higher close or a gap-up).