Bullish Pattern - Bottom End Sweep
A bullish reversal pattern that signals the start of an uptrend following an extended consolidation period.
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Pattern Overview
It is a YC bullish, trend reversal pattern comparable to an imaginary right triangle. It is made up of two sides that meet at a 90 degree angle, linked by a hypotenuse.
Horizontal Line (Long side): Connects two or more roughly equivalent market highs (Line 1).
Vertical Line (Short side): Extends from the horizontal to the lowest point below it (Line 2).
Hypotenuse: Connects descending market lows, reflecting bounces below the horizontal (Line 3).
Formation
Wait for at least two valid bounces and a clean structure before planning entry.
Requires at least two, ideally three, bounces with descending lows under the horizontal river-line resistance.
Velocity within bounces: Declines from the horizontal river-line resistance to lows (B1, B2, B3) should be slower than the rises back to it (see candle counts in the pic).
Signal Confirmation
A bullish setup is confirmed after breakout and controlled retest near the key level. Place stop loss below invalidation.
The pattern is confirmed after a breakout above the horizontal and a subsequent retracement close to that level.
A stop loss should be set just below the last bounce low or within a trader-defined percentage, depending how low from each other lows B2 and B3 are.
Historical Performance
Historical cases show meaningful upside when confirmation and risk management are respected.
Some Examples
