Ladder Top

The Ladder Top pattern is not very common, but it is an interesting trend reversal formation.

It consists of four consecutive bullish candles appearing in the uptrend, forming a series of higher lows, higher highs and higher closing prices, followed in the next session by a candle that opens lower and below the closing price of the previous bullish candle and closes below the body of the same candle.

This pattern indicates that the significant top has been reached. The pattern is canceled if the price breaks above the high price of the fifth candle of the pattern.

Although this is a bearish reversal pattern, the price action is not very bearish. There is a strong uptrend followed by a bearish pattern that could be a possible short-term pullback or short-term correction.