Are we going to see a Ladder Bottom soon? So far we have 3 red candlesticks in a downtrend fashion. What we need is another red candlestick that will look like an inverted hammer. Then on the next day a gap up large green. Seems like a very hard pattern to form but there is a possibility.
The Ladder Bottom is a five candle bullish reversal formation. The pattern occurs during a downtrend, with the first three candlesticks are red with successive lower opens and close. The fourth day is a red candle with only an upper wick. The fifth day is a green candlestick that opens above the body of the fourth.