Mat-Hold Pattern

Mat-Hold Pattern is a multi-candle bullish continuation pattern. Imagine in a strong bullish candlestick pattern appears in the uptrend followed by a gap up opening.

The price closes lower in this session and it turns out to be a bearish session. The bearish body of the second pattern is relatively smaller and above the bullish body of its previous session.

The price gaps up in the next session, but bulls lost the momentum and price closed lower. This formation of bullish candle followed by couple of bearish candles is similar to the Upside Gap Two Crows pattern. Mat-Hold pattern is an extension to that. In the case of Mat-Hold pattern, it is not necessary that the third bearish candle engulfs the body of its previous candle.

Upside Gap Two Crows pattern indicates the weakness of bulls and shows the possibility of the trend reversal. In the next session, price closes above the high of the third bearish candlestick patterns and registers the bullish breakout that triggers Mat-Hold pattern.

Mat-Hold pattern is a strong bullish continuation pattern that offers the bullish trade opportunity.

There can be two or three bearish candlestick patterns of consolidation. They must remain above the body of the first bullish candlestick pattern followed by the breakout to qualify for the Mat-hold pattern.

The Mat-Hold pattern is strong formation because it shakes out weak traders. The stock is in strong hands and ready to continue to move up.

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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.


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