Pattern Detail

Bullish After Bottom Gap Up

Five-candle bottom: three heavy down candles into a gap, then a small up bar and a long up candle that gaps higher as buyers take over.

An idealized Bullish After Bottom Gap Up, drawn to show the shape. This pattern did not occur on the markets tested, so this is a textbook example rather than a real occurrence. The bright candles are the pattern; the dimmed bars are surrounding context.
An idealized Bullish After Bottom Gap Up, drawn to show the shape. This pattern did not occur on the markets tested, so this is a textbook example rather than a real occurrence. The bright candles are the pattern; the dimmed bars are surrounding context.

Shown only on the markets where this pattern occurs.

This pattern did not fire often enough on this market and timeframe to measure. Try a lower timeframe or a more active instrument.

A bullish after bottom gap up is a five-candle bottom that marks the moment a hard sell-off flips. Price falls through three long down candles, each closing lower than the last, and the third one gaps lower to look like capitulation. Then a small up candle steadies the tape, and a long up candle gaps higher and runs. The early gap is the exhaustion, the late gap is the buyers stepping in.

How to spot it

  • The market is falling hard into the pattern.
  • The first three candles are long down (red) candles, each closing lower than the one before.
  • The third down candle gaps below the second. This is the look of panic selling.
  • The fourth candle is a small up (green) candle that stops the bleeding.
  • The fifth candle is a long up (green) candle that gaps above the fourth and drives higher.
  • The two gaps, one down then one up, frame the turn.

The psychology

Three long down candles in a row, each closing lower than the last, is a market in full retreat. The sellers are not just in control, they are running. The third candle gapping lower is the part that often marks the end rather than the middle: it has the look of capitulation, the last holders giving up all at once and selling into any bid. When everyone who wanted out is out, there is little supply left to push price lower.

The small up candle is the first sign the bleeding has stopped. It does not reverse anything on its own, but it shows the relentless selling has paused and a floor is forming. Then the long up candle gaps higher and runs, and that is the buyers stepping in with conviction. The same gapping behavior that marked panic on the way down now marks demand on the way up. Two gaps bracket the low: one made by sellers exhausting themselves, the other made by buyers taking the tape.

A turn that violent can keep going or snap back, and the figures below weigh which is more common.

Does it actually work?

A pattern is a setup, not a trade, so the honest question is not “did it win” but “how much room did it tend to offer before it was proven wrong.” The tabs below answer that across five futures markets (Nasdaq, S&P 500, gold, crude oil, natural gas) and seven timeframes from one minute to one day.

For each occurrence we measure the room the move offered in units of the pattern’s own risk, then set it against what a random entry on the same market would have done. When the pattern offers more room more often than chance, that shows up as a real edge. When it does not, the page says so plainly.

Read it with the sample size in view. On the faster timeframes a pattern can fire thousands of times, enough to trust. On the daily chart it is far rarer, so treat those numbers as a hint rather than a verdict. Thin samples are flagged for you on the page.

Did it appear?

In the five futures markets and the history measured here, this pattern did not occur. It asks for three long down candles back to back and then a clean gap up to begin the recovery. Three full-bodied down sessions in a row are uncommon on these futures, and the gap up that must follow rarer still. The measurement below is ready for it, but on these markets there has been nothing to measure. Treat it as a textbook form to recognize rather than a setup you will meet often here.

How we measured it

  • Entry is the close of the final candle of the pattern.
  • One unit of risk, 1R, is the distance from that close down to the pattern’s invalidation point: the lowest low of the 5 candles that form it. If price trades through there, the setup is wrong.
  • We then follow the next 20 bars and record how far price ran in your favor, in multiples of that risk, before the stop was hit.
  • Every figure is set against a random entry on the same market and timeframe, so the market’s own drift is accounted for.
  • No profit target and no position sizing. Where you take profit is a strategy choice; this measures only the room the pattern tends to give.

What this page does not cover

  • Volume on the pattern’s candles.
  • Whether the pattern forms at a meaningful support level.
  • Pairing it with a trend filter or a confirming signal.
  • A profit target or position sizing. We use the pattern’s own invalidation point as the stop to define risk, but where you take profit, and how much you put on, are strategy decisions this page leaves to you.

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