Matching High - Bearish Candlestick Reversal Pattern

April 16, 2008 by admin

Matching High - Candlestick Reversal Pattern

The matching high candlestick pattern is a bearish reversal signal. It is comprised of two green candlesticks that arise after a clear uptrend is in place. The first candlestick is a long green body that closes at the high of the bar. The second candle in the matching high formation gaps down on the open, but is able to regain its ground and closes at the same high of the previous bar. The psychology behind this formation is that a high has been successfully tested without any follow through. Shorts should wait for the low of the second candlestick to be exceeded prior to taking a short position.

Matching High Charting Example

Matching High

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