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.

RELATED TERMS
  1. Hook Reversal

    A short-term candlestick pattern, occurring in either an uptrend ...
  2. Piercing Pattern

    A technical trading signal that is marked by a closing down day ...
  3. Continuation Pattern

    A technical analysis pattern that suggests a trend is exhibiting ...
  4. Technical Analysis of Stocks and ...

    The academic study of historical chart patterns and trends of ...
  5. Double Bottom

    A charting pattern used in technical analysis. It describes the ...
  6. Unique Indicator

    A technical indicator that can be developed using only core elements ...
Related Articles
  1. Trading

    Technical Analysis: Chart Patterns

    By Cory Janssen, Chad Langager and Casey MurphyA chart pattern is a distinct formation on a stock chart that creates a trading signal, or a sign of future price movements. Chartists use these ...
  2. Investing

    Introduction - Day Traders

    In this tutorial, we will examine the very short-term trading style known as day trading. In particular, we will show how the trader can create a winning combination by using particular strategies ...
  3. Trading

    Analyzing Chart Patterns: Conclusion

    By Chad Langager and Casey Murphy, senior analyst of ChartAdvisor.com This introduction to chart patterns has provided a broad overview of chart pattern analysis and several of the largest patterns. ...
  4. Markets

    Watch For These Chart Pattern Breakouts Right Now

    These stocks are near chart pattern breakout points, indicating potential trend reversals ahead.
  5. Trading

    Advanced Candlestick Patterns

    Go beyond the basics! Learn to identify and trade island reversals, kicker patterns and more.
  6. Markets

    Breakout Stocks to Watch Right Now

    These three stocks are near major breakout points, which will affect the short-term, and potentially the long-term direction of the stocks.
  7. Trading

    Most Commonly Used Forex Chart Patterns

    These chart patterns provide entries, stops and profit targets that can be easily seen.
  8. Trading

    Find Turning Points With Single-Day Patterns

    On their own, single-day patterns can be unreliable, but that doesn't mean they can't be used effectively.
  9. Trading

    How To Build A Trading Indicator

    Wondering how people like Elliott and Gann built their famous trading tools? Learn the basics of constructing an indicator.
  10. Trading

    How To Spot And Screen For Chart Patterns With Finviz: Manually Filter The Results

    Whether the quick summary list is used, or a comprehensive stock screen conducted for chart patterns, some manual work is still required. The chart pattern screener narrows down the list of available ...
RELATED FAQS
  1. How do I build a profitable strategy when spotting a Mat Hold pattern?

    Learn how to establish a profitable trading strategy based on the mat hold candlestick pattern, how to identify a strong ... Read Answer >>
  2. How are Mat Hold patterns interpreted by analysts and traders?

    Understand the elements of the mat hold candlestick pattern and how analysts and traders interpret this continuation signal ... Read Answer >>
  3. Are continuation patterns useful in forex trading and stock trading?

    Learn what a continuation pattern is in technical analysis and why it is useful in forex and stock market trading, and discover ... Read Answer >>
  4. What are the differences between patterns and trends?

    Learn the difference between a pattern and a trend. Explore how technical analysts use patterns and trends to identify trading ... Read Answer >>
  5. How are Rising Three Methods patterns interpreted by analysts and traders?

    Understand the basics of the rising three methods candlestick pattern and how this strong continuation signal is interpreted ... Read Answer >>
  6. How effective is creating trade entries after spotting a Rising Three Methods pattern?

    Understand the basics of the rising three methods pattern and how this highly reliable pattern lends itself to the creation ... Read Answer >>
Hot Definitions
  1. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
  2. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  3. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  4. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
  5. Underweight

    1. A situation where a portfolio does not hold a sufficient amount of a particular security when compared to the security's ...
  6. Russell 3000 Index

    A market capitalization weighted equity index maintained by the Russell Investment Group that seeks to be a benchmark of ...
Trading Center