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Ladder Top Candlestick Pattern - Definition and Trading

This article is about the formation, meaning, and trading of the Ladder Top candlestick pattern in Forex.

The Forex market is one of the most liquid and high-volume financial markets in the world. In order to be successful here, Japanese candlestick patterns need to be read and future price movements need to be predicted at a minimum, at least to some extent. In the field of technical analysis, there are various indicators, charts, and candlestick patterns. One of these patterns is the "Ladder Top" candlestick pattern.

This image shows a bearish Ladder Top candlestick pattern in technical analysis
Ladder Top Candlestick Pattern

Topic: Ladder Top    

Type: bearish

Trend direction: reversal

Opposite pattern: Ladder Bottom


Ladder Top takes its name from the ladder-like structure formed on the chart. It usually appears at the peak of a rising trend and represents a pattern resembling the steps of a ladder. This pattern has a notable feature and signals significant changes in price action. While the Ladder Top candlestick pattern is forming, several consecutive candles follow each other. The body lengths of these candles are usually equal, but they can rarely be different. The candle in the last step may sometimes have a long wick and a short body. But the candles must be the same color (green).


The Ladder Top candlestick pattern is usually a formation indicating a trend reversal. When trading in financial markets, upon observing consecutive candlesticks arranged on an inclined line in an uptrend chart, we can say that the Ladder Top pattern has formed. This formation often signals the end of a bull market or a pullback. Over time, buyers begin to withdraw from the market, and the formation of the first bearish candlestick signals the beginning of the decline. Now, we can consider opening short positions.

Selling: The completion of the pattern can signal a possible sell opportunity. We can place a sell order below the close of the first bearish candle (red candle).

Stop Loss: We may prefer to place our stop-loss level above the formation of the pattern or above the high of the first bearish candle (red candle).

Target: When the pattern is completed, a downward trend in prices is expected. When setting a target, we can use a method such as the height from the beginning to the end of the pattern as our first preference. See the trading example on the Euro/US Dollar 4-hour chart:

This chart shows a trading example where the Ladder Top candlestick pattern functions as a sell signal, indicating the end of an uptrend in the EUR/USD currency pair.
Selling trade on EUR/USD chart with Ladder Top pattern.

Remember: Forex trading is risky, the "Ladder Top" pattern is just a tool. Like any trade, emotional control and risk management are important. Experienced traders know that tools like the "Ladder Top" are not reliable on their own, and therefore support their analysis with a variety of factors.

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