Skip to content
CoinChartist

CoinChartist

Your Future Charts Here

Buy the CoinChartist Crypto Trading Journal, now available at Amazon.
Primary Menu
  • Featured
  • Japanese Candlesticks
  • Chart Patterns
  • Technical Indicators & Oscillators
  • Home
  • Education
  • Japanese Candlesticks
  • Matching High
  • Bearish Candlestick Patterns
  • Japanese Candlesticks

Matching High

The Matching High pattern is a bearish reversal pattern consisting of two candles that typically forms after an uptrend.
465
Matching high Japanese candlestick pattern crypto
  • Sentiment: Bearish
  • No. of candles: 2
  • Direction: Reversal

What Is The Matching High Japanese Candlestick Pattern?

The Matching High pattern is a bearish reversal pattern that typically forms after an uptrend.

The Japanese candlestick pattern consists of two candles.

Both candles have long upper shadows and small or nonexistent lower shadows, creating a visual “matching high” formation.

The first candle is typically a long white (bullish) candle, while the second candle is a long black (bearish) candle.

What Is The Psychology Behind The Bearish Matching High Pattern?

The Matching High pattern reflects a potential shift in market sentiment from bullish to bearish.

During the period of the first white candle, buyers are in control and push the price higher.

However, during the period of the second black candle, sellers step in and overwhelm the buyers, pushing the price back down and erasing the gains made during the first candle’s period.

This pattern indicates a possible loss of momentum for the bulls and hints at a potential trend reversal, as sellers attempt to regain control.

Auto Amazon Links: No products found. No products found.

How To Trade The Matching High Reversal Pattern?

To trade the Matching High pattern, wait for confirmation by a subsequent bearish candle or another technical indicator.

The sell trigger occurs when the price moves and closes below the low of the second black candle, confirming the pattern.

Place a stop loss order above the high of the first white candle to protect against potential false breakouts or reversals.

As the price moves in your favor, consider using trailing stops or other risk management techniques to lock in profits and minimize potential losses.

Additional Tips

While the Matching High pattern can be a reliable bearish reversal signal, it is essential to use it in conjunction with other technical indicators and chart patterns to confirm the trend change.

Additionally, be aware of the overall market context and consider factors such as support and resistance levels, as well as the strength of the prevailing trend.

Keep in mind that no single pattern can guarantee a trend reversal, and proper risk management is always necessary.

Continue to learn about Japanese candlesticks through books, such as Steve Nison’s  “Japanese Candlestick Charting Techniques” and “Beyond Candlesticks.” 

FacebookTweetPin

Related

Continue Reading

Previous: Bearish Meeting Line
Next: On-Balance Volume

Recent Posts

  • What Are Trends in Crypto? How to Identify and Trade Different Types of Crypto Trends
  • Bollinger Bands
  • Moving Average Convergence/Divergence (MACD)
  • Relative Strength Index (RSI)
  • Hurst Cycle Theory: Understanding Bitcoin Cycles
  • About
  • Affiliate Disclosure
  • Privacy Policy
  • Terms & Conditions
  • Featured
  • Japanese Candlesticks
  • Chart Patterns
  • Technical Indicators & Oscillators
Copyright CoinChartist.io © All rights reserved.