The market continues to trade in the direction of the established decline, registering lower lows.

The next session is bullish, pushing prices higher. The matching lows indicate that a possible bottom may be in place and a reversal may be imminent.

During the course of the downtrend, traders enter the market with short positions trading in the direction of the decline.

While the sentiment is clearly negative, the next session opens higher (than the previous close) as traders find prices attractive.

While the battle between bulls and bears goes on, traders enter with short positions but not willing to trade at a price lower than the previous session (thus matching lows), and long positions- to register a bullish candle and shift the sentiment to positive.