bullish matching lowfor what it is worth, American Bulls, has posted a Buy-If rating on Volta. The reasoning is interesting, and here is the definition of the pattern identified:
Get the highest rated stock from Americanbulls for this pattern >>>Bullish Matching Low Pattern occurs when two black days appear with equal closes in a downtrend. The pattern is suggestive of a short-term support, and it may cause a reversal on the next day of trading.
Recognition Criteria:
1. The market moves in downtrend.
2. We then see a long black candlestick on the first day.
3. Second day follows with another black candlestick whose closing price is equal or extremely close to the closing price of the first day.
Explanation:
Market continues to move down as evidenced by first black candlestick. Next day; prices open at a higher level, they then continue to go up during the day but the day closes at a price which is equal to the closing price of the previous day. This pattern suggests a short-term support. Shorts should be aware of this fact. If they ignore Bullish Matching Low Pattern as a possible reversal signal, they may pay for it soon. Two days closing at the same price is indicative of short-term support and this support may be followed by a reversal on the next day of trading.
Important Factors:
The reversal of downtrend requires a confirmation on the third day. The confirmation of the trend reversal may be in the form of a white candlestick, a large gap up or a higher close on the next trading day (on the third day).