Rising Window

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Figure 1.

Figure 1. Rising Window pattern.

Forecast: bullish continuation
Trend prior to the pattern: uptrend
Opposite pattern: Falling Window
Remark: in particular cases the pattern may act as a bullish reversal pattern if prior its occurrence market was in a downtrend.

Construction:

  • First candle
    • any candle except the Four-Price Doji
    • a candle in an uptrend or closing above the trendline
  • Second candle
    • any candle except the Four-Price Doji
    • the candle's low above the previous candle's high

 


This article is devoted to the Rising Window two-line pattern.

The Rising Window is classified as a bullish continuation pattern. Both pattern's lines can be any basic candles, appearing either as a long or as a short line. The only exception is the Four-Price Doji, which cannot appear as a part of the pattern.

Pattern is characterized by a price gap appearing between the first candle's high and the second candle's low.

Nison and Bulkowski in their books provide examples with a visible uptrend prior pattern occurrence what may be confusing. In our interpretation, for the Rising Window, it is enough that the first candle's closing price is located above the trendline, whereas the opening price may be placed below. The assumption that the Rising Window pattern requires a few candles in an uptrend, prior its occurrence, may lead to losing very significant signals.

Windows are known in western technical analysis and often are called as gaps. Classic interpretation says that after three occurrences of the Rising Window, trend may reverse. Very often, the Rising Window acts as a support.

Nison claims that when a Rising Window is preceded by a bullish reversal pattern, its reliability is greater. Our research also says that if the second candle of a Rising Window is formed at a high volume, its reliability is better.

Particular attention should be paid to the second candle of the pattern. A black candle or a doji candle may weaken the signal. The second line may be a part of other, conflicting pattern. Sometimes the Rising Window may be recognized at the same time also as the Bearish Doji Star or the Two-Candle Shooting Star. In such unclear situations, attention should be focused on the overall market context and the resistance/support lines.

A word of caution is needed for traders taking a position on the second line of the pattern. Namely, when the price gaps upward, the candle still can be closed lower producing a black body. Then instead of having a Rising Window we may have a bearish reversal pattern, for example, the Dark Cloud Cover or the Bearish Engulfing.

Please note that interpretation of the Rising Window adapted by CandleScanner is different than the one proposed by Bulkowski. Bulkowski claims that the Rising Window is composed of none candle lines because it is just a gap.

Either way, the most important matter is to be consistent. Therefore, when we present any statistics of the Rising Window, it is important to remember which interpretation is used, to compare apples to apples.

 

Figure 2.

Figure 2. In January 2010 the market dropped by around 36.9% (from $17.45 to $12.74). That price movement created a strong resistance zone, composed of two black basic candles formed at a high trading volume: a (1) Long Black Candle and an Opening Black Marubozu.
On the bottom price stabilized, but the market has a problem to move up for the period of 2 months, due to the Opening Black Marubozu basic candle. Finally price gaps upward, forming a Rising Window pattern, breaking out of the first line of the support zone made by the Opening Black Marubozu. A long white body and a high trading volume of the second line of the Rising Window forms a local support area.
The market, however, still is struggling with the (1) Long White Candle. After forming a White Candle, price does move down. The mentioned support zone formed by the Rising Window works for a while. Then the (2) Long Black Candle appears, breaking out of support zone, and the bears control the market again.

 

Figure 3.

Figure 3. The Rising Window pattern appears after the unsuccessful attempt of breaking out of a support zone formed by the Long White Candle.
The second line of the Rising Window is a High Wave basic candle. This candle produces a one-line pattern called One-Candle Shooting Star. Both lines of the Rising Window forms a Two-Candle Shooting Star pattern, conflicting with the Rising Window. However, applying strict rules on these two patterns, i.e. the One-Candle Shooting Star and the Two-Candle Shooting Star, they are not considered as valid because they appeared in too short lasting uptrend.
All these nuances are mentioned, however, to point out that the one should rather wait until the market situation is clear.
Appearance of the White Candle confirms the Rising Window pattern.

 

Rising Window statistics

Below you can find some Rising Window pattern statistics calculated by CandleScanner software. To see more detailed statistics, for other markets and periodicity try our CandleScanner software. Prices start at only $10, and you can see more detailed statistics, for other markets and periodicity. Click here to find out more!

Pattern name: Rising Window
Scanner settings: daily stocks
Group: S&P500
Number of symbols: 502
Date range: 7/1/1995 - 6/30/2015
Time interval: daily candles
Total number of candlesticks: 2,236,421
Number of occurrences (Rising Window): 36,612
Number of occurrences (all candlestick patterns): 638,570
% of occurrences (Rising Window): 5.73 %
Average frequency: 61.1
Efficiency statistics (5 candlesticks testing period)

Efficiency NO DATA FALSE LOW MEDIUM HIGH
Number of
Occurrences
6 7,124 10,823 7,099 11,560
% of
Occurrences
0.02 % 19.44 % 29.56 % 19.39 % 31.59 %

 

Efficiency statistics (10 candlesticks testing period)

Efficiency NO DATA FALSE LOW MEDIUM HIGH
Number of
Occurrences
58 6,689 8,444 6,006 15,415
% of
Occurrences
0.16 % 18.11 % 23.06 % 16.40 % 42.27 %

 

10 top best performing symbols

Occurrences Statistics 5 candlesticks testing period
(HIGH efficiency)
10 candlesticks testing period
(HIGH efficiency)
Symbol Number of
Occurrences
Average
Frequency
Number of
Occurrences
% of
Occurrences
Number of
Occurrences
% of
Occurrences
URI 74 59.6 39 52.71 % 46 62.17 %
LB 75 67.1 35 46.67 % 43 57.33 %
EMC 105 47.9 50 47.61 % 59 56.18 %
AGN 86 58.5 35 40.69 % 47 55.81 %
CMI 98 51.4 44 44.89 % 54 55.10 %
CTSH 82 52.3 33 40.25 % 45 54.88 %
NOV 119 39.5 56 47.05 % 65 54.62 %
PWR 77 56.8 39 50.65 % 42 54.55 %
SWN 81 62.1 40 49.38 % 44 54.32 %
GLW 118 42.7 54 45.77 % 64 54.24 %

 

10 top worst performing symbols

Occurrences Statistics 5 candlesticks testing period
(FALSE efficiency)
10 candlesticks testing period
(FALSE efficiency)
Symbol Number of
Occurrences
Average
Frequency
Number of
Occurrences
% of
Occurrences
Number of
Occurrences
% of
Occurrences
NTAP 98 50.3 41 41.84 % 41 41.84 %
SWKS 102 49.4 42 41.18 % 42 41.18 %
NVDA 85 48.7 32 37.65 % 32 37.65 %
MCHP 83 60.7 31 37.35 % 30 36.14 %
AMAT 96 52.4 32 33.33 % 32 33.33 %
LRCX 81 62.1 27 33.33 % 27 33.33 %
XLNX 93 54.1 31 33.33 % 31 33.33 %
KLAC 86 58.5 29 33.72 % 28 32.56 %
ADI 87 57.9 28 32.18 % 28 32.18 %
FFIV 76 53.2 24 31.58 % 24 31.58 %
Pattern name: Rising Window
Scanner settings: daily stocks
Group: S&P500
Number of symbols: 502
Date range: 7/1/2010 - 6/30/2015
Time interval: daily candles
Total number of candlesticks: 614,034
Number of occurrences (Rising Window): 11,351
Number of occurrences (all candlestick patterns): 166,328
% of occurrences (Rising Window): 6.82 %
Average frequency: 54.1
Efficiency statistics (5 candlesticks testing period)

Efficiency NO DATA FALSE LOW MEDIUM HIGH
Number of
Occurrences
6 1,686 4,309 2,605 2,745
% of
Occurrences
0.05 % 14.80 % 37.96 % 22.95 % 24.24 %

 

Efficiency statistics (10 candlesticks testing period)

Efficiency NO DATA FALSE LOW MEDIUM HIGH
Number of
Occurrences
58 1,486 3,216 2,274 4,317
% of
Occurrences
0.51 % 12.58 % 28.33 % 20.03 % 38.55 %

 

10 top best performing symbols

Occurrences Statistics 5 candlesticks testing period
(HIGH efficiency)
10 candlesticks testing period
(HIGH efficiency)
Symbol Number of
Occurrences
Average
Frequency
Number of
Occurrences
% of
Occurrences
Number of
Occurrences
% of
Occurrences
DAL 29 43.4 18 62.07 % 20 72.42 %
CVC 22 57.2 12 54.55 % 15 68.18 %
AGN 25 50.3 10 40.00 % 16 68.00 %
VLO 25 50.3 10 40.00 % 16 68.00 %
ORLY 22 57.2 10 45.46 % 14 63.63 %
PHM 22 57.2 13 59.09 % 14 63.63 %
CBG 31 40.6 15 48.40 % 19 61.29 %
COH 23 54.7 9 39.13 % 14 60.87 %
PH 30 41.9 11 36.67 % 18 60.00 %
F 27 46.6 12 44.44 % 16 59.26 %

 

10 top worst performing symbols

Occurrences Statistics 5 candlesticks testing period
(FALSE efficiency)
10 candlesticks testing period
(FALSE efficiency)
Symbol Number of
Occurrences
Average
Frequency
Number of
Occurrences
% of
Occurrences
Number of
Occurrences
% of
Occurrences
GMCR 25 50.3 11 44.00 % 11 44.00 %
FSLR 25 50.3 10 40.00 % 10 40.00 %
CSC 26 48.4 11 42.31 % 10 38.46 %
RL 28 44.9 10 35.71 % 9 32.14 %
FIS 22 57.2 9 40.91 % 7 31.82 %
HPQ 23 54.7 7 30.43 % 7 30.43 %
RIG 27 46.6 8 29.63 % 8 29.63 %
WHR 24 52.4 7 29.17 % 7 29.17 %
AIV 22 57.2 6 27.27 % 6 27.27 %
PNC 26 48.4 7 26.92 % 7 26.92 %

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