The Ladder Bottom is a bullish reversal pattern represented by five candles.

During a downtrend, the first three candles have a long decreasing body. The fourth candle also decreases and has the shape of an Inverted Hammer. Finally, the last candle is a long increasing candle that opens above the previous close.

The first three decreasing candles continue with the ongoing downtrend, but the fourth one shows signs of weakness. Finally, the last one is a long increasing candle that kicks off the beginning of a new trend.

The fifth candle ends with the downtrend and initiates a bullish movement that is likely to continue, therefore, it signals a buy.