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Latter Top is not very common but an interesting trend reversal formation.
Imagine four consecutive bullish candles appearing in the uptrend. There is a series of higher low, higher high and higher closing prices. The trend and price action are very bullish. In the next session, price opens lower and below the closing price of previous bullish candlestick pattern and closes below the body of the previous candlestick pattern. It turns out to be a significant bearish body candle. This pattern is known as a Ladder top formation.
This pattern indicates that the significant top is in place. The pattern gets negated if price goes above the high price of the fifth candle of the pattern.
Even though this is a bearish reversal pattern, the price action is not very bearish. There is a strong uptrend followed by a bearish candle stick pattern which could be possibly a short-term pullback or a short-term correction. Seek more confirmation and evidence that there is a supply in the ladder top area and that the top is strong.
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This pattern can be plotted on the chart by adding it from the study menu in TradePoint & RZone. The pattern is also available in the system builder section. By combining this pattern with other patterns and indicators, you can create your own trading strategies. For any group of stocks and market segments, you can scan and backtest stocks based on those strategies.