Frypan Bottom

A Japanese candlestick pattern signaling a bullish reversal. At the end of a downtrend, volatility tightens as the market is forming a prolonged bottoming pattern. Short bodies substitute the long black bodies and lower lows form the first part of this rounding bottom or frypan, that mark the lowest level of the bottom. The second part of the bottoming pattern is characterized by higher lows but the range of the bodies remain short- in sync with the low volatility. Finally, a break- out above the pattern with a gap, is necessary to complete the pattern.