Online Trading Blog

  • Weekly Stock Market Insights.
  • Trading Strategies, Products & Info
  • Indicators, Candlesticks & Patterns
  • Be a Subscriber be a Happy Trader
  • Click here to Explore the sitemap.

 

Thursday, March 12, 2009

Bullish Mat Hold Candlestick Formation

Bullish mat hold is a bullish trend-continuation candlestick pattern, which indicates continuation of an uptrend ever after some bearish days. This is a rare but highly reliable 5 candlestick pattern which has strong resemblance to bullish rising three methods pattern; and is thus often not easy to identify. The major difference is in the position of middle candlesticks; they are higher than their counterparts in rising three methods.


The requirement of bullish mat hold candlestick formation include
  • The formation should form after a noticeable uptrend.
  • The first day should be a long day with high bullish activity.
  • The second day candlestick should be a small real bodied candlestick which gaps away from first day candlestick and should be bearish in nature.
  • The third and fourth day candlestick should also be small bodied ones and should be stay within the upper range of first day candlestick
  • The fifth day should be noticeable with a long white (bullish/colorless) candlestick closing on a new high.
Bullish mat hold pattern develops as the bears continue to fail to make any significant success – creating low less than first day’s range. This enhances the confidence of bulls and prices are taken to new highs. Although the bullish mat hold formation is considered as a highly reliable formation, confirmation is still suggested which can be a bullish candlestick of upside gap on new day.

NobleTrading.com Offers Online Stock Trading, Online Options Trading
Online Futures Trading, Online Forex Trading
Worldwide Brokerage Service, Day Trading Brokerage

posted by Daniel Pipitone at 5:55 AM

Blog Home    Archive List    << Previous     -    Next >>

Privacy Statement | Margin Disclosure | Risk Disclosure | Business Continuity Plan | Site Map | Order routing Disclosure Penson | Blog

The risks involved with online trading can be financially substantial. Online trading system delays or market volatility may adversely affect online trading related services. Not all securities, services or products are available in all countries or U.S. states. Please consider whether online trading is compatible with your financial resources and individual circumstances. Online trading in extended hours entails additional risks such as lower trading liquidity, higher volatility, more rapidly changing prices, wider spreads, and the like. Nothing herein should be deemed as an offer or solicitation of securities trading, products or services in any jurisdiction in which online trading brokerage services are not properly licensed. SIPC insurance does not apply to futures or forex business.

Brokerage Services by NobleTrading.com Member finra/sipc/nfa/pcx
Copyright NobleTrading.com ®, Inc 2009. All rights reserved.