The Ladder Top (Ladder Top) has five candles. Three consecutive up candles with higher closes (a steady rise like rungs of a ladder), then a fourth up candle whose lower shadow reveals a selling attempt, then a fifth down candle that opens with a downward gap and closes lower. It signals the end of the upward leg.
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PATTERN ID
SignalBearish ▼
Reliability★★★☆☆
Win Rate59%
Expected move−4–9%
TimeframeDaily
Confirmationcandle 5 confirms
The short answer
What is a Ladder Top candle?
The Ladder Top (Ladder Top) has five candles. Three consecutive up candles with higher closes (a steady rise like rungs of a ladder), then a fourth up candle whose lower shadow reveals a selling attempt, then a fifth down candle that opens with a downward gap and closes lower. It signals the end of the upward leg.
How do you recognize a Ladder Top candle?
Three consecutive up candles with successively higher closes. The fourth candle is an up candle with a notable lower shadow (the first selling attempt). The fifth is a down candle that opens with a gap below the fourth candle's body.
Is the Ladder Top candle bullish or bearish?
A bearish reversal pattern made of 5 candles. Confirmation: candle 5 confirms. Reference success rate 59%. You can spot it yourself on live daily candles for any symbol in the members' technical terminal. Open the technical terminal →
Pattern illustration
Three rising candles like steps ← a fourth with a lower shadow ← a fifth falling candle with a gap
How to identify the pattern
Step-by-step checks
Three consecutive up candles with successively higher closes
Fourth candle: an up candle with a notable lower shadow (the first selling attempt)
Fifth candle: a down candle that opens with a gap below the fourth candle's body
Volume rises on the fifth candle
Trading psychology
The power struggle between buyers and sellers
An orderly rise suggests buyers are in control, but the lower shadow on the fourth candle reveals the first sellers stepping in. The downward gap on the fifth confirms the initiative has shifted. Late buyers rush to exit, 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 rise (~59%). Expect a pullback of 4–9% over 6–12 days. A stop above the high of the fourth candle.
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