Bullish mat hold

The pattern suggests that there was a temporary pause or consolidation in the bullish trend, but the buying pressure remained strong, and the uptrend is likely to continue. 

Type: Continuation

Relevance: Bullish

Prior Trend: Bullish

Reliability: High

Confirmation: Suggested

No. of Sticks: 5

The Bullish Mat Hold Pattern is known as a strong continuation pattern. In this pattern, a long white candlestick appears during an uptrend, which then is followed by three consecutive small real bodies that constitute a short downtrend. Then bull ascendancy begins on the fifth day marked with a closing price that is a new high.

Recognition Criteria:

1. Market is characterized by uptrend.

2. We see a long white candlestick in the first day.

3. We then see an upward gap and a black candlestick on the second day.

4. We see a sequence of small real bodies constituting a brief downtrend however staying within the range of the first day on the second, third, and fourth days.

5. Finally we see a white candlestick, which opens with a gap and closes with a new high on the fifth day.

Explanation: 

The pattern starts with a long white (or green) candlestick, indicating a strong bullish trend. The second candlestick is also white and opens within the range of the previous candlestick, but then has a gap down before continuing higher, forming a small black (or red) body.

The third and fourth candlesticks are also white, with the third candlestick opening lower than the second and the fourth opening higher than the third, forming a "mat" or flat box pattern. The fifth candlestick is a long white (or green) candlestick that closes higher than the previous candlesticks, indicating a continuation of the bullish trend.

Important Factors:

The Bullish Mat Hold Pattern is similar to the Bullish Rising Three Methods Pattern. The difference is that the reaction days, two, three, and four are altogether higher than those in the Bullish Rising Three Methods Pattern.

The reliability of this pattern is very high, but still a confirmation in the form of a white candlestick with a higher close or a gap-up is suggested.