Do Candlesticks Pattern Work? Are They Reliable? A Quantitative Backtest Of 23 Candlesticks (Trading Strategy)

Candlesticks are a popular charting tool and are frequently used by promoters using anecdotal evidence. We use candlesticks in our charts ourselves, but not as a predictive tool in our trading strategies. In this article, we ask: do candlesticks work? Yes, candlesticks work. We test 23 different candlestick patterns quantitatively with strict buy and sell…

Bearish Abandoned Baby Candlestick Pattern (Backtest)

The Bearish Abandoned Baby pattern is a bearish reversal candlestick formation that appears in an uptrend and signals a potential trend reversal. This pattern is characterized by a gap up, followed by a Doji candlestick with a gap down, creating the appearance of an “abandoned baby.” In this article, we will delve into details about…

The Bearish In Neck Line Candlestick Pattern (Backtest)

Looking to trade with a bearish bias? The Bearish In Neck Line candlestick pattern may be just what you need to spot selling opportunities in the market. This article will delve into this pattern’s characteristics and potential meaning and explore its use in technical analysis. To make it easy to follow along, we’ll present the…

The Bearish Harami Candlestick Pattern (Backtest)

The Bearish Harami is a candlestick pattern comprising of a small bearish candlestick forming within the body of a previous, sizeable bullish candlestick. Many traders rely on this pattern to predict potential reversals to the downtrend. The Bearish Harami candlestick pattern is one of the few effective chart patterns that help traders predict the flow…

Bearish Separating Lines Candlestick Pattern (Backtest)

The Bearish Separating Lines is a rare bearish continuation pattern. It starts with a relatively strong bullish candle, followed by a strong bearish candle, whose opening price is at the same level as the opening price of the previous bullish candlestick. As a trader, it’s important to stay up-to-date on various candlestick patterns that can…

Bearish Kicker Candlestick Pattern (Backtest)

The bearish kicker candlestick pattern is presumably one of the most effective bearish reversal patterns that can explicitly define the potential bearish momentum and flow of price action. It is characterized by a large, downward-moving candle that appears after an uptrend. The bearish kicker candlestick pattern indicates a potential shift from bullish to bearish. It…

Study and Backtest Of All 75 Candlesticks – Which One Actually Works And Which One Is Best?

We have yet to see much quantified backtest of candlestick patterns. Practically all candlestick “analysis” is based on anecdotal evidence and some random charts showing successful trades (and ignoring the bad ones). Do candlesticks really work? We decided to find out and sat down to quantify ALL the candlestick patterns. Over the last weeks, we…

Candlestick Pattern – Doji Trading Strategy (Backtest and Historical Performance)

Doji trading strategies are popular and the doji pattern is one of the most famous candlestick patterns. Candlestick patterns have several “derivatives” and can be used together with other bars. There are at least 64 different candlestick patterns that have been given a name, please read our article about how many candlestick patterns are there?…

3 Bullish Candlestick Patterns That Work (Backtest and Historical Performance)

Very few bullish candlestick patterns work, but this article presents 3 bullish candlestick patterns that work. Even though Candlesticks are a popular charting method, very few patterns have any predictive value. We use candlesticks extensively ourselves for charting because we believe they give an excellent visualization of the price action, even though we never use…

Bearish On Neck Line Candlestick Pattern (Backtest)

The Bearish On Neck Line is a two-candlestick continuation pattern that occurs during a downtrend and can help traders recognize potential selling opportunities in the market. In this article, we will examine the features and potential significance if the Bearish On Neck Line pattern, and we’ll discuss how it is used in technical analysis. However,…

One Black Crow Candlestick Pattern (Backtest)

Candlestick charts are often used to analyze price action because of the patterns that signal potential trend reversals and provide some trading opportunities. Among the various candlestick patterns, the One Black Crow pattern is considered highly reliable. Are you interested in learning more about the One Black Crow candlestick pattern? The One Black Crow candlestick…

Matching High Candlestick Pattern (Backtest)

Candlestick charts are instrumental in identifying potential changes in short-term trends, which can be signals for potential trading opportunities. Among the various candlestick patterns, the matching high pattern is very unique. Want to learn about the matching high candlestick pattern? The matching high pattern is a bearish reversal candlestick pattern that is seen in an…

Ladder Bottom Candlestick Pattern (Backtest)

Candlestick charts are popular among traders for their ability to simplify technical analysis with recognizable patterns that can indicate future market behavior. One such pattern is the Ladder Bottom pattern, known for its bullish effects. Let’s take a look at this Ladder Bottom pattern. The Ladder Bottom pattern is a bullish reversal candlestick pattern that…

Inverted Hammer Candlestick Pattern (Backtest)

Candlesticks are a popular charting technique used in the technical analysis of financial markets. The shape of the candlestick can provide insight into market sentiment and potential future price movements. One popular candlestick pattern that is commonly seen on price charts is the Inverted Hammer. What do you know about the Inverted Hammer candlestick pattern…

Hanging Man Candlestick Pattern (Backtest)

Candlesticks are a popular visual representation of price action in trading. Traders use candlesticks to identify patterns and make informed trading decisions. The Hanging Man candlestick pattern is popular amongst traders as it is considered a reliable tool for predicting changes in the trend direction. Let’s take a look at the Hanging Man candlestick pattern…

Hammer Candlestick Pattern (Backtest)

The candlestick chart is useful for detecting small changes in price and trends. Candlesticks often form patterns that can indicate trading opportunities. The Hammer candlestick pattern is considered one of the most reliable of the various candlestick patterns. Want to know about the Hammer candlestick pattern trading strategy? The Hammer candlestick pattern is a bullish…

Gravestone Doji Candlestick Pattern (Backtest)

Candlestick charts are instrumental in identifying minor fluctuations in prices and trends, which frequently result in patterns that signal potential trading opportunities. Among the various candlestick patterns, the Gravestone Doji is considered a highly reliable indicator. Are you interested in learning more about the Gravestone Doji candlestick pattern trading strategy? The Gravestone Doji is a…

Falling Window Candlestick Pattern (Backtest)

The candlestick charting method, which originated in 18th-century Japan, has gained increasing popularity among technical traders, particularly those who utilize price action. The Falling Window candlestick pattern is a notable example of a highly valued candlestick pattern, due to its predictive value. But what is the Falling Window candlestick pattern trading strategy? The Falling Window…

Falling Three Methods Candlestick Pattern (Backtest)

Ever since the 18th century Japan when the candlestick charting method was developed, it has been growing in popularity among technical traders, especially price action traders. One of the reasons for its popularity is the candlestick patterns with predictive value, such as the Falling Three Methods candlestick pattern. Let’s take a look at the Falling…