What it is
The Mat Hold is a bullish continuation pattern that is a stronger variant of the Rising Three Methods. It begins with a large bullish candle, followed by a small bearish candle that gaps up from the first, then two or three more small candles that drift slightly lower but never close below the first candle's body, and finishes with a strong bullish candle that makes new highs.
What distinguishes the Mat Hold from Rising Three Methods is the initial gap up on the second candle. This gap demonstrates that even the brief pullback couldn't overcome bullish momentum. The pattern is considered one of the most reliable continuation signals in candlestick analysis.
The psychology
The Mat Hold tells the story of a trend so strong that even profit-taking can't derail it. The first large bullish candle shows decisive buying pressure.
The second candle gaps up — showing overnight bullish sentiment — but then two or three small candles drift lower. This is natural profit-taking after a strong move. However, the pullback is shallow and never threatens the first candle's body.
The final bullish candle breaks to new highs, confirming that the brief pause was just that — a pause. The initial gap up that held through the pullback is the key differentiator from Rising Three Methods. It signals that even the correction couldn't overcome bullish momentum.
Identification
- 01Prior uptrend — Must appear within an established bullish trend
- 02First candle is large and bullish — Strong bullish impulse
- 03Second candle gaps up — This gap distinguishes Mat Hold from Rising Three Methods
- 04Two-three small candles drift lower — But stay above the first candle's body
- 05Final candle is bullish and closes at new highs — Above the second candle's high
- 01Gap remains open — The gap between candles 1 and 2 holds through the pullback
- 02Low volume on pullback candles — Shows the selling is half-hearted
- 03Strong volume on final candle — Confirms resumption of buying
- 04Clean uptrend prior — Higher highs and higher lows established
- 01Pullback candles close below first candle's body — Too deep a correction
- 02Gap gets filled — Losing the gap weakens the bullish thesis
- 03Final candle doesn't make new highs — Incomplete confirmation
- 04Heavy selling volume during pullback — Suggests distribution, not consolidation
Execution framework
Conservative: Enter long above the final candle's high.
Aggressive: Enter long at the close of the final candle when it makes new highs.
Below the lowest point of the pullback candles. If the correction deepens past this level, the pattern structure is broken.
T1: Previous resistance or round number. T2: Measured move equal to the first candle's range projected from the breakout.
Minimum 1:2. Mat Hold is considered one of the most reliable continuation patterns — trade it with conviction.
Context matters
The Mat Hold is a rare bullish continuation pattern that signals a brief pause before the uptrend resumes. Its rarity makes it valuable when properly identified, but also means traders must be strict about identification criteria to avoid false signals.
- 01Within a strong, established uptrend with clear momentum
- 02When the small retracement candles stay above the first candle's midpoint
- 03Volume contracts during the pullback candles and expands on the final bullish candle
- 04Above rising key moving averages (20 and 50 EMA)
- 05In a sector or market showing broad strength
- 06When the continuation candle closes above the first candle's high
- 01In a choppy or sideways market without clear trend direction
- 02When the pullback candles retrace more than 50% of the first candle
- 03If volume stays high during the pullback (suggests real selling)
- 04Near major resistance levels that could cap the move
- 05Late in an extended uptrend where exhaustion is likely
- 06If the final bullish candle fails to exceed the first candle's high
The small pullback candles should stay within the first bullish candle's range. If they don't, it's not a mat hold.
Compare the full pattern set
Use the library to compare similar structures before deciding what the chart is actually building.