Tower Bottom - Bullish Reversal Candlestick Pattern

Tower Bottom Definition

A tower bottom occurs at low price levels after an extensive sell-off. At some point in the downward move, the security will begin to flatten out and develop dojis. Then one or more large white candles will emerge. The formation of long candles resembles a tower structure, hence the name tower bottom. The key indicator for the formation is large white candles on the way up. The closest Western chart formation to the tower bottom is the V reversal. The formation is useful for longer-term traders since the tower is often finalized late in the move.

Tower Bottom