Mat Hold |
Characteristic of Candlesticks: Reversal
Relevance of Candlesticks: Bullish
Prior Trend of Candlesticks: Bullish
Reliability of Candlesticks : Recommended
Confirmation of Candlesticks: Reliable
Candlestick Patterns Key Reference |
DESCRIPTION
Mat Hold are five candlesticks formation which is known as a strong continuation pattern.
Mat Hold pattern is recognized by a long bullish candlestick followed by three consecutive bearish candlesticks with small bodies.
This pattern is completed by the fifth bullish candlestick which the opening is above the close of the previous candlestick and close at a new high.
PATTERN RECOGNITION
1. Mat Hold pattern can be identified by an uptrend.
2. Refering to above diagram, we will first see a long bullish candlestick.
3. Then we will see an upward gap with a bearish candlestick which followed by a sequence of next two small bearish candlesticks each closing lower.
4. Finally we will see the fifth bullish candlestick opening above the close of the previous candlestick and then close at a new high.
EXPLAINATION
The Mat Hold pattern appear during an uptrend which confirmed by the first long bullish candlestick.
The first candlestick open with a gap and trade within a narrow range which closes at slightly lower level. However the close is not lower than or close to the first bullish candlestick opening price.
This suggested that the bullish momentum come to a rest while the bears are encouraged.
The next two bearish candlesticks each close slightly lower which caused some concern about the ability of the upward momentum. But still the closing price of the next two bearish candlesticks is not lower than or close to the first bullish candlestick opening price.
This shows that there is an attempt for reversal but it failed hence prices rally again to close at new high which clearly state the previous bears are only a temporary pause in a strong uptrend.
Based on above observation, the uptrend should continue its upward momentum.
The Continuation Patterns imply that a trend has temporary paused and will continue its original trend rather than reversal.
POINT TO NOTE
The Mat Hold pattern is similar to the Bullish Rising Three Methods Pattern.
The difference is that the second, third and fourth candlesticks are higher than those in the Bullish Rising Three Methods Pattern.
The reliability of
Mat Hold pattern is very high but a confirmation is required in a form of a bullish candlestick with a higher close or a gap up is suggested.
CANDLESTICK PATTERNS KEY REFERENCE
Irrespective of Color (Can be bullish or bearish) |
Uptrend |
Consolidation |
Downtrend |
ANTICIPATED DIRECTION OF TREND
Lighter Arrow = Lower Probability
Solid Arrow = Higher Probability
More Likely to go sideway, Less likely to rally
|
More likely to rally, Less likely to go sideways
|
More likely to go sideway, Less likely to fall
|
More likely to fall, Less likely to go sideways |
