Pattern Detail

Bullish Ladder Bottom

Five-candle bottom: three long down candles, a fourth with an upper wick hinting at a rally, then a strong up candle that gaps higher.

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

A ladder bottom is a five-candle bottom that ends a steep slide. Three long down candles step the market lower like rungs on a ladder, each closing below the last. The fourth candle is another down candle but leaves a long upper wick, the first sign buyers are testing higher. Then a strong up candle opens above that wick, gapping up out of the downtrend. The ladder down is finished, and the final candle marks the climb back up.

How to spot it

  • The market is falling into the pattern.
  • The first three candles are long down (red) candles, each closing lower than the last.
  • The fourth candle is a down candle, but it leaves a long upper wick where buyers pushed up and got rejected.
  • The fifth candle is a strong long up (green) candle.
  • That fifth candle opens above the top of the fourth candle, gapping out of the slide.

The psychology

The three long down candles are sellers in complete control, stepping the market lower like rungs and giving buyers nothing. Anyone watching sees a clean, relentless slide with no sign of a floor. That stretch sets the mood: the market feels one-way, and most traders expect more of the same.

The fourth candle is where it cracks. It still closes down, so sellers look like they have the upper hand, but the long upper wick is new. Buyers pushed price well above the close during that bar before getting knocked back. They lost the round, yet for the first time they showed up with size. The fifth candle confirms what the wick hinted: price gaps up and out of the slide on a strong up candle, and the sellers who owned the move for three bars suddenly have no answer. The ladder down is finished, and the last rung points the other way.

Whether that lift off the bottom keeps going is the question the figures below take up.

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.

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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