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Nikita (SEBI RA)

23rd Sep · SEBI-Registered Analyst

Matching Low – Bullish Reversal Setup

📊 The Matching Low pattern signals potential reversal in a downtrend. ✅ Formation (2 candles): 1️⃣ First → Long red candle in downtrend. 2️⃣ Second → Another red candle closing at same low price as the first. ✅ Meaning: Selling pressure unable to push below previous low → support confirmed. 📌 Example: Stock falls ₹320 → ₹300, then 2 consecutive reds close exactly at ₹298 → Matching Low → buyers may step in. 🧠 Rule: Stronger if supported by next day green candle.

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