Bearish Mat Hold Candlestick Definition
The bearish mat hold candlestick is a variation of the falling three methods. The formation is comprised of 5 candlesticks. The bearish mat hold is an extremely bearish setup due to its complexity and rarity. This pattern is most powerful when it occurs in the context of primary up downtrend.
Bullish Mat Hold Candlestick Hold Setup
Below are the details of the candlestick structure for the bullish mat hold formation:
- The first candlestick in the formation is a long red candlestick
- The second day gaps down with a higher close
- The third and fourth days continue to retrace losses from the first candlestick with light volume
- The fifth candlestick is a large red candlestick which makes a new low
Bearish Mat Hold Chart Example