Any wrestling fans out there? When you think of the Bullish Mat Hold pattern, think of the bears as a determined but fatigued wrestler, trying to hold the bulls to the mat. After gaining control of the bulls, they make a few short pushes to lower the price, but they are ultimately defeated. They simply can’t match the bulls’ tenacity! Although the Bullish Mat Hold is known to be trustworthy and true, it occurs infrequently. For help spotting this bullish continuation pattern when it does make a chance appearance, review the information below and keep your eyes peeled!

Bullish Mat Hold

Formation

When a candlestick pattern is rare and not often seen and reviewed, it can be forgotten. So if you think you’ve spotted the Bullish Mat Hold, be sure to examine the formation. If the pattern doesn’t contain the following criteria, it can’t be classified as a Bullish Mat Hold:

First, an uptrend must be in progress. Second, the first day must be defined by a long white candlestick. Third, an upward gap must occur after the first day. Fourth, following the gap, on the second day, there should be a short black candlestick. Fifth, two more short candles must follow on the third and fourth days: the first can be white or black, but the second must be black. These candles remain above the low of the first day. Sixth, the pattern must end with another long white candlestick on the fifth day. This candle should establish a new high (above the high of the first day).

Note that the Bullish Mat Hold is quite similar to the Rising Three Methods candlestick pattern. The difference lies in the placement of the three middle candles. In the Rising Three Methods pattern, the small black candles are contained within the length of the first candle. In the Bullish Mat Hold pattern, these middle candles are higher.

Meaning

The bulls are solidly in control, a fact that is conveyed through the established uptrend and the tall white candle that begins the signal. On the second day, however, a twist occurs. A gap open makes it seem as though the bulls will keep pushing the price up, but they are quickly overpowered by the bears, who only manage to lower the price slightly. In the next couple of days, the bears continue to slowly nudge the price down.

Their weakness is obvious, however; they aren’t even able to push the price below the opening of the first day. On the last day, the bulls are able to harness the market once more, driving the price up and ending at a high point.

The bears’ attempt at a reversal has failed. The uptrend will continue.

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The Bullish Mat Hold is rare, complex, and highly reliable. However, even if you are confident in the pattern, it is best to wait for confirmation in the form of a white candlestick with a higher close or an upward gap. Good luck!

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