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…
Candlesticks are popular. They are very useful for visual displays, but our previous backtests indicate candlesticks might be useful to make trading strategies as well. In this article, we look at what is the best time frame for candlesticks: The best time frame for candlesticks is daily bars and relatively short holding periods from 1…
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…
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 Belt Hold candlestick pattern is one that has been around for a while. It’s not one of the common ones, but it still has a sizeable number of fans among candlestick pattern traders. A Bearish Belt Hold is a bearish candlestick pattern that appears in an uptrend and indicates a potential trend reversal….
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…
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…
The introduction of the candlestick chart in the 18th century has done a lot to simplify how we’ve come to know the once complex trading world. Now, traders from all walks of life can analyze charts in their comfortable timeframes and make sense of what’s going on in the market. Even more, they can predict…
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…
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…
