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Pipe Bottom

The Pipe Bottom has two consecutive declining sessions with similar long bodies at the bottom, signaling bullish reversal.

2-3 long-bodied candlesPipe Bottom: 2-3 long-bodied candles at bottom → Strong rise

Pattern Details

Category

reversal

Success Rate

64%

Average Move

+11%

Duration

2-5 sessions

Pattern Structure

Pattern Structure
Key components that define this chart pattern
  • 1
    Session 1: Long declining candle
  • 2
    Session 2: Similar long declining candle
  • 3
    Two candles nearly parallel

Trading Rules

Trading Rules
Essential rules for trading this pattern successfully
  • ✓
    Enter long position when price advances above two candles
  • ✓
    Volume should be high
  • ✓
    Target = Length of the pipe
  • ✓
    Stop loss below pipe bottom
Trading Tips
  • Two candles should be similar size
  • Rare pattern
  • Confirm with following advancing session

Statistics

Breakout Statistics
Bullish Breakout64%
Bearish Breakout36%
Performance Metrics
Average Rise+11%
Average Decline-4%
Pullback Rate16%