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Nikita (SEBI RA)

16th Sep · SEBI-Registered Analyst

Ladder Bottom – Bullish Reversal Setup

📊 The Ladder Bottom is a 5-candle bullish reversal pattern. ✅ Formation: 1–3️⃣ First three → Consecutive red candles (selling pressure). 4️⃣ Fourth → Small-bodied candle, showing slowdown. 5️⃣ Fifth → Strong green candle closing above 3rd red → reversal confirmation. ✅ Meaning: Downtrend is exhausting, buyers step in aggressively. 📌 Example: Stock slides ₹180 → ₹160 in 3 days, then Ladder Bottom forms, followed by rally to ₹175+. 🧠 Rule: Stronger if 5th candle has high volume.

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