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This pattern indicates that prices reached the bottom despite touching a new low.
1. A long black candlestick appears on a chart.
2. The second candlestick is also black and the closing price of the second day is the same as on the first day.
The market trades with a bearish bias which is confirmed by a long black candlestick on the chart. The next day prices open at higher levels and move further upwards but at the end of the trading day prices close at the previous level. This is a typical confirmation of a short-term support which is a serious obstacle to bears who ignore this signal. Neglecting this pattern, they can miss the moment of a trend reversal.
At the same time, the psychological aspect that stands behind trading during the period of the pattern formation is not significant. The important thing is that two trading days should close at the same level.
The body of every day of the pattern can be either long or short. It does not influence the meaning of the pattern.
The pattern is followed by a long black candlestick that is usually bearish. In this case it is necessary to wait for confirmation of this candlestick.
The Matching Low pattern looks similar to the Homing Pigeon. However, the second candlestick cannot be defined as engulfing due to similar closing prices.