Matching Low Pattern

Matching Low is one of the commonly used candlestick patterns in quantitative trading, representing a bullish reversal pattern.

Calculation Principle

Matching Low pattern is identified by the following conditions:

  1. Two consecutive bearish candles
  2. Second day's closing price is equal to the first day's closing price
  3. Both candles have long lower shadows
  4. Pattern appears at the bottom of a downtrend
  5. Both candles have small bodies

Parameter Description

  • Input Parameters:
    • Open: Opening price
    • High: Highest price
    • Low: Lowest price
    • Close: Closing price
  • Parameters:
    • penetration: Body penetration ratio (default: 0)

Usage Recommendations

  1. Use in combination with other technical indicators
  2. Pay attention to the overall market trend
  3. Monitor volume confirmation
  4. Set reasonable stop-loss levels
  5. Watch for false breakouts

Notes

  • Ensure data quality
  • Pay attention to pattern completeness
  • Consider market environment
  • Watch for false signals
  • Combine with fundamental analysis
  • Pay attention to risk control
  • Regularly evaluate strategy effectiveness
  • Optimize parameters
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