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Abandoned Baby
Belt Hold
Breakaway
Concealing Baby Swallow
Doji Star
Dragonfly Doji
Engulfing
Gravestone Doji
Hammer
Harami
Harami Cross
Homing Pigeon
Inverted Hammer
Kicking
Ladder Bottom
Mat Hold
Matching Low
Meeting Lines
Morning Doji Star
Morning Star
Piercing Line
Rising Three Methods
Separating Lines
Side by Side White Lines
Stick Sandwich
Three Inside Up
Three Line Strike
Three Outside Up
Three Stars In the South
Three While Soldiers
Tri Star
Unique Three River Bottom
Upside Gap Three Methods
Upside Tasuki Gap

Matching Low
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Pattern: reversal
Reliability: high

Identification
A long black day is followed by another black day with equivalent closes both days.

The Psychology
In a downtrend or during a pullback within an uptrend, a long black day occurs signaling the bears being in control. The stock gaps up the next day but then sells off to close at the same level as the previous day. The more times a stock can successfully test and hold a low, the higher the chance a reversal will occur once the seller become exhausted. Strength the following day with volume would confirm the pattern.

The bullish Matching Low is similar to the bullish Homing Pigeon.



Here is a great place to go long a bullish Matching Low formation. In a steady uptrend, TNE pulled back and formed the pattern right at a previous support area.



NEM was slowly moving up when it formed a bulling Matching Low pattern. The stock immediately moved higher (probably coincidental) and continued its move up.


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