Shooting Star Candle Strategy (Backtest)

Candlestick patterns provide plenty of insight into how the price moved in the recent past and how it might move in the near future. Some traders use these patterns to signal trade entry and exit points. While there are many such patterns, only a few may be effective, and one of them is the shooting…

Engulfing Trading Strategy (Backtest)

There are different ways traders analyze the markets to find trading opportunities. While some use indicators, others study the price movements and the patterns made by candlesticks. One common candlestick pattern is the engulfing pattern. What is the engulfing trading strategy? The engulfing trading strategy is a price action trading method that uses the engulfing…

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 we sat down to quantify ALL the candlestick patterns that exist. Over the…

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…

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 of the patterns have any predictive value. We use candlesticks extensively ourselves for charting because we believe they give a very good visualization of the price action, even though…