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Nikita (SEBI RA)

25th Sep · SEBI-Registered Analyst

Ladder Top – Bearish Reversal Pattern

📊 The Ladder Top is a 5-candle bearish reversal signal seen at the end of an uptrend. ✅ Formation: 1️⃣–3️⃣ First three → Consecutive strong green candles. 4️⃣ Fourth → Small-bodied green showing slowdown. 5️⃣ Fifth → Strong red candle closing below the 4th → trend reversal begins. ✅ Meaning: Buying momentum is fading, sellers are taking charge. 📌 Example: Stock rallies ₹500 → ₹540, Ladder Top forms, and price drops below ₹530 → reversal confirmed. 🧠 Rule: Watch for volume drop on 3rd and 4th candle + spike on 5th for higher accuracy.

PIDILITIND

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