Bullish Matching Low

The Matching low is a reversal pattern that consists of two different candlesticks.

The first day the stock has a big down day. This signals that the trend is still weak and the bears are still completely in charge.

The secound day the stock opens up a little and forms another down day. This day however is unable to move any lower then the close of the last day.

Why is the Matching Low a reversal indicator? When the stock fails to break through the close of the last day it signals the bears might be losing strength. This will probably be more evedent in the next few days.

If the stock breaks below the bottom of the 2nd day it may show that the security is starting to make new lows instead of showing that the stock may be bottoming out.

Other Candlestick Patterns

Island Reversal Pattern - A reversal pattern which may take a few days to form.

Marubozu - An easy to spot 1 day pattern

Morning Star - A 3 day bullish reversal pattern