Mat Hold Pattern

DEFINITION of 'Mat Hold Pattern'

A pattern found in the technical analysis of stocks that ultimately indicates the stock will continue its previous directional trend (bullish or bearish). The pattern is initially indicated by a significant trading day in one direction or another, followed by three small opposite trending days. The fifth day then continues the first day's trend, pushing higher or lower, in the same direction as the first day's movement.

BREAKING DOWN 'Mat Hold Pattern'

The mat hold pattern is considered a very reliable but rare indicator in the technical analysis of stocks. It is often confused with the rising three's indicator, with the difference being that the trades on days two to four of the rising three indicator generally stay within the high and low established on the first day. The trading range of days two to four in the mat hold pattern can trade outside of the high-low range made on the first day.

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RELATED FAQS
  1. How do I implement a forex strategy when spotting a Mat Hold pattern?

    Mat hold patterns are continuation formations that occur in Japanese candlestick chart analysis. Mat holds are rare, requiring ... Read Full Answer >>
  2. How are Mat Hold patterns interpreted by analysts and traders?

    The mat hold candlestick pattern is a fairly reliable bullish continuation signal, though finding one can be a bit of a challenge. ... Read Full Answer >>
  3. How effective is creating trade entries after spotting a Mat Hold pattern?

    Though the mat hold candlestick pattern is fairly elusive, it is a very reliable signal of trend continuation when properly ... Read Full Answer >>
  4. How do I build a profitable strategy when spotting a Mat Hold pattern?

    The mat hold is a relatively rare candlestick pattern, though it more than makes up for its rarity with reliability. If the ... Read Full Answer >>
  5. Is technical analysis used only to analyze stocks?

    The simple answer to this question is definitely not. This form of analysis can be applied in more situations than you may ... Read Full Answer >>
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    These terms refer to two different stock-picking methodologies used for researching and forecasting the future growth trends ... Read Full Answer >>
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