Reading the market regime before prices move

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After hours
Bullish signal ▲ · pattern 33

Ladder Bottom

Ladder Bottom

The Ladder Bottom (Ladder Bottom) has five candles. Three consecutive down candles with lower closes (a steady drop like rungs of a ladder), then a fourth down candle whose upper shadow reveals a buying attempt, then a fifth up candle that opens with an upward gap and closes higher. It signals the end of the downward leg.

33
PATTERN ID
Signal Bullish ▲
Reliability ★★★☆☆
Win Rate 60%
Expected move +4–9%
Timeframe Daily
Confirmation candle 5 confirms

The short answer

What is a Ladder Bottom candle?
The Ladder Bottom (Ladder Bottom) has five candles. Three consecutive down candles with lower closes (a steady drop like rungs of a ladder), then a fourth down candle whose upper shadow reveals a buying attempt, then a fifth up candle that opens with an upward gap and closes higher. It signals the end of the downward leg.
How do you recognize a Ladder Bottom candle?
Three consecutive down candles with successively lower closes. The fourth candle is a down candle with a notable upper shadow (the first buying attempt). The fifth is an up candle that opens with a gap above the fourth candle's body.
Is the Ladder Bottom candle bullish or bearish?
A bullish reversal pattern made of 5 candles. Confirmation: candle 5 confirms. Reference success rate 60%. You can spot it yourself on live daily candles for any symbol in the members' technical terminal. Open the technical terminal →
Pattern illustration
Three falling candles like steps ← a fourth with an upper shadow ← a fifth rising candle with a gap

How to identify the pattern

Step-by-step checks
  • Three consecutive down candles with successively lower closes
  • Fourth candle: a down candle with a notable upper shadow (the first buying attempt)
  • Fifth candle: an up candle that opens with a gap above the fourth candle's body
  • Volume rises on the fifth candle

Trading psychology

The power struggle between buyers and sellers
An orderly drop suggests sellers are in control, but the upper shadow on the fourth candle reveals the first buyers stepping in. The upward gap on the fifth confirms the initiative has shifted. Late sellers rush to cover, which speeds up the reversal.

Outlook and confirmation

Entry conditions and expected price move
Confirmation is built in: the confirming candle is part of the pattern
Reversal after an extended drop (~60%). Expect +4–9% over 6–12 days. A stop below the low of the fourth candle.
Ideal setting for the pattern
Bottom of an extended downtrend
Recommended timeframe: daily

Where to find it on the platform

  • Technical terminal for members
    Shows the daily-timeframe candles for any symbol on the platform's list. You identify the pattern by eye: the terminal does not name it.