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Nikita (SEBI RA)

10th Oct ยท SEBI-Registered Analyst

Ladder Bottom โ€“ Bullish Reversal Setup ๐Ÿ“ˆ

๐Ÿ“Š The Ladder Bottom is a 5-candle bullish reversal pattern seen after a prolonged downtrend. โœ… Formation: 1๏ธโƒฃโ€“3๏ธโƒฃ Three consecutive red candles with lower closes. 4๏ธโƒฃ Small red candle showing reduced selling. 5๏ธโƒฃ Strong green candle closing above the prior 2 candles. โœ… Meaning: Bears losing steam โ†’ bulls take charge โ†’ reversal likely. ๐Ÿ“Œ Example: Stock falls โ‚น440 โ†’ โ‚น400 over 3 reds, small red closes โ‚น398, then strong green closes โ‚น415 โ†’ Ladder Bottom โ†’ bullish reversal. ๐Ÿง  Tip: Works best near support zones.

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