What is the Ladder Bottom Pattern? The Ladder Bottom is a five-candle bullish reversal pattern that appears after a downtrend, signalling a potential shift from selling pressure to buying momentum
First Three Candles – Strong Downtrend Three consecutive bearish candles form, each closing lower than the previous one, reflecting strong selling pressure in the market
Fourth Candle – Market Stabilises A smaller candle forms with a long upper shadow, indicating that selling pressure is slowing and buyers may be starting to enter the market
Final Candle – Bullish Reversal A strong bullish candle forms and closes above the previous candles, signalling that buyers have regained control and a potential upward trend may begin
Confirmation & Volume Traders usually wait for continued price movement upward after the pattern. Rising trading volume during the final candle strengthens the bullish signal