Moneycontrol
Aug 24, 2011 11:27 AM IST | Source: Moneycontrol.com

Ladder Top: Bearish Reversal Pattern

Ladder Top is a bearish reversal pattern and it appears at the end of uptrend. It consists of 5 candles. The pattern gives early signs of deterioration of uptrend.

Ladder Top: Bearish Reversal Pattern

Ladder Top is a bearish reversal pattern and it appears at the end of uptrend. It consists of 5 candles. The pattern gives early signs of deterioration of uptrend.


First three candles of this pattern are three long white candles, which resembles the three white soldiers formation. Fourth day candle closes higher, but with a long lower shadow, which goes into the body of the third candle. Fifth day candle is a long black one which opens below the body of the fourth day candle.


Strategy: Short positions can be entered into once low of fifth candle is exceeded.

 

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