Bullish Tower Bottom Candlestick Pattern

Bullish Tower Bottom candlestick patterns are bullish reversal candlestick patterns. These patterns typically develop at the bottom of an extended decrease in a stock’s share price.

This candlestick pattern is identified through a series of observations since the candlestick pattern takes several trading periods for it to develop.

When a tall red candlestick pattern develops at the end of of an extended downtrend for a stock’s share price, and then the next couple of candlesticks fail to push lower than the close of the tall red candlestick, you may be witnessing the development of a Bullish Tower Bottom candlestick pattern in process.

A Bullish Tower Bottom candlestick pattern can sometimes be anticipated when you see a Bullish Harami candlestick pattern develop. A Bullish Harami candlestick pattern can be a prelude to a Bullish Tower Bottom candlestick pattern.

Requirements

These are the requirements for a Bullish Tower Bottom candlestick pattern.

• 2 tall candlesticks separated by 2-5 candlesticks that have smaller real bodies than the 2 tall candlesticks

• The first tall candlestick’s real body is usually green colored but can also be red as I have illustrated on the above illustration

• The second tall candlestick’s real body is usually red colored but can also be green in volatile markets

Characteristics & Observations

These are some of the characteristics and observations I have made with Bullish Tower Bottom candlestick patterns.[s2If !current_user_can(access_s2member_level1)]…..

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• The development of a Bullish Tower Bottom candlestick pattern at the end of an extended, well developed downtrend is usually the signal of a major bottom

• From an Elliott Wave perspective, a Bullish Tower Bottom candlestick pattern tends to develop either right before or during a Wave 1  of a new Bullish Impulse wave pattern

Bearish Counter-Part

The bearish counter-part to a Bullish Tower Bottom candlestick pattern is a Bearish Tower Top candlestick pattern. These candlestick patterns, both bullish and bearish, usually signal major turning points in a trend.

The difference between Bullish Tower Bottom candlestick patterns and Bearish Tower Top candlestick patterns is where they develop in the stock’s trend.

Bullish Tower Bottom candlestick patterns typically develop at the end of well-defined downtrends whereas Bearish Tower Top candlestick patterns develop at the top of well-defined uptrends.

Both are defined by 2 tall candlesticks with a handful of smaller candlesticks contained within the 2 tall candlesticks’ real bodies.

Support Area

The support area for a Bullish Tower Bottom candlestick pattern is the bottom area of the 2 tall candlesticks.

Trading Strategies

Real Chart Examples