Tower Bottom
Definition
A tall down-candle, sideways congestion, then a tall up-candle — a bottom reversal.
Psychology
Sellers pushed down, stalled at the bottom, then buyers took over and recovered it.
Real-life analogy
💡 Price falls into a valley, flattens at the bottom, then climbs back up the far side.
Confirmation
A tall bullish candle that recovers most of the prior drop.
Invalidation
A close back below the congestion low.
Historical behaviour
A slower, clearer cousin of the morning star; stronger after an extended downtrend.
Illustrative success rate
~55-60% when confirmed · Medium reliability
Common beginner mistakes
- • Confusing it with a morning star (a tower has congestion, not a gap)
- • Acting before the up-candle completes
Quick quiz — did you understand?
1. Is the Tower Bottom generally considered bullish, bearish, or neutral?
2. What is the best practice before acting on a Tower Bottom?
3. Which is a common beginner mistake with the Tower Bottom?
Educational and probability-based analysis only. This is not financial advice and not a prediction of real market outcomes.