Takuri Line

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Figure 1. Takuri Line pattern.

Figure 1. Takuri Line pattern.

Japanese name: takuri
Forecast: bullish reversal
Trend prior to the pattern: downtrend
Opposite pattern: Hanging Man

Construction:

  • white or black candle with a small body
  • no upper shadow or the shadow cannot be longer than the body
  • lower shadow at least three times longer than the body
  • if the gap is created at the opening or at the closing, it makes the signal stronger
  • appears as a long line

 

https://youtu.be/H5e5pB1-C-8

This article is devoted to the Takuri Line one-line pattern.

The Takuri Line pattern is very similar to Hammer. The only difference is that Hammer's lower shadow length cannot exceed more than twice its body length, whereas Takuri Line's lower shadow cannot be shorter than at least three times its body.

The Takuri Line is more reliable when is formed in a clear downtrend, or within a support zone. An occurrence of Takuri Line pattern after the short-term declines usually does not matter. Very important is its market context. In the algorithm implemented within CandleScanner, we used some constraint in which the candle is recognized as a valid pattern only when the body is fully located under the trend line.

Takuri Line pattern appearing after the price gap should be seen as a stronger signal, but as with every one-line pattern, it is good to wait for the signal confirmation in the subsequent candles. However, aggressive traders often take the position immediately after the opening of the next candle with the gap, as it gives the opportunity for a dynamic price movement upwards.

Takuri in Japanese denotes bottom fishing which is a fishing techniques, used to catch fish that are found near the sea floor.

Figure 2.

Figure 2. Figure presents the example demonstrating importance of the market context in which a pattern occurred. We can notice a downtrend lasting for more than three weeks. Every occurrence of the Black Candle forms a resistance zone.
Takuri Line pattern is formed (at a trading volume higher than the average) as a part of the Three Inside Up pattern. Both patterns are bullish, however previously mentioned resistance zones are hard to conquer.
On the following day since the appearance of the Takuri Line, the market opens with the price gap, exactly on the level of the trendline, creating a support zone. In theory, the pattern is confirmed, but we can see that the resistance zone formed by Black Candles is quite powerful.

 

Figure 3.

Figure 3. The occurrence of Takuri Line pattern in the area of strong resistance zone that was formed by the Long Black Candle. Resistance zone is confirmed by a high trading volume.

 

Takuri Line statistics

Below you can find some Takuri Line 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: Takuri Line
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 (Takuri Line): 9,936
Number of occurrences (all candlestick patterns): 638,570
% of occurrences (Takuri Line): 1.56 %
Average frequency: 225.1
Efficiency statistics (5 candlesticks testing period)

Efficiency NO DATA FALSE LOW MEDIUM HIGH
Number of
Occurrences
8 2,195 2,492 1,835 3,406
% of
Occurrences
0.08 % 22.01 % 25.08 % 18.47 % 34.36 %

 

Efficiency statistics (10 candlesticks testing period)

Efficiency NO DATA FALSE LOW MEDIUM HIGH
Number of
Occurrences
10 2,110 2,001 1,549 4,266
% of
Occurrences
0.10 % 21.14 % 20.14 % 15.59 % 43.03 %

 

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
WAT 23 214.7 14 60.87 % 16 69.56 %
JBHT 24 209.8 13 54.16 % 16 66.66 %
MS 26 193.6 12 46.15 % 17 65.39 %
PHM 25 201.4 16 64.00 % 16 64.00 %
SWK 27 186.4 13 48.15 % 17 62.96 %
STZ 24 209.8 9 37.49 % 15 62.50 %
ORLY 26 193.6 12 46.16 % 16 61.55 %
PCP 26 193.6 14 53.85 % 16 61.54 %
NUE 23 218.9 8 34.79 % 14 60.87 %
ROK 25 201.4 13 52.00 % 15 60.00 %

 

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
LVLT 28 155.0 17 60.71 % 17 60.71 %
SIG 23 201.9 12 52.17 % 12 52.17 %
M 24 209.8 11 45.83 % 11 45.83 %
VRSN 24 182.6 11 45.83 % 11 45.83 %
SLG 30 149.9 14 46.67 % 13 43.33 %
TWX 22 228.8 9 40.91 % 9 40.91 %
MOS 27 186.4 11 40.74 % 11 40.74 %
HP 30 167.8 12 40.00 % 12 40.00 %
CELG 23 218.9 10 43.48 % 9 39.13 %
FITB 23 218.9 9 39.13 % 9 39.13 %
Pattern name: Takuri Line
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 (Takuri Line): 2,430
Number of occurrences (all candlestick patterns): 166,328
% of occurrences (Takuri Line): 1.46 %
Average frequency: 252.7
Efficiency statistics (5 candlesticks testing period)

Efficiency NO DATA FALSE LOW MEDIUM HIGH
Number of
Occurrences
8 458 735 525 704
% of
Occurrences
0.33 % 18.52 % 30.25 % 21.60 % 29.30 %

 

Efficiency statistics (10 candlesticks testing period)

Efficiency NO DATA FALSE LOW MEDIUM HIGH
Number of
Occurrences
10 418 568 450 984
% of
Occurrences
0.41 % 16.79 % 23.37 % 18.52 % 40.91 %

 

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
QCOM 7 179.7 5 71.43 % 7 100.00 %
DHI 7 179.7 6 85.71 % 6 85.71 %
GILD 9 139.8 5 55.56 % 7 77.78 %
URI 9 139.8 6 66.67 % 7 77.78 %
ADBE 8 157.3 5 62.50 % 6 75.00 %
COH 7 179.7 5 71.42 % 5 71.42 %
MAS 7 179.7 5 71.42 % 5 71.42 %
NLSN 7 159.0 4 57.13 % 5 71.42 %
STZ 7 179.7 2 28.57 % 5 71.42 %
MAT 9 139.8 4 44.45 % 6 66.67 %

 

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
CCL 7 179.7 5 71.43 % 5 71.43 %
CVX 7 179.7 4 57.14 % 4 57.14 %
MU 9 139.8 5 55.56 % 5 55.56 %
XOM 10 125.8 5 50.00 % 5 50.00 %
CVS 7 179.7 3 42.86 % 3 42.86 %
DO 7 179.7 3 42.86 % 3 42.86 %
TGNA 7 179.7 3 42.86 % 3 42.86 %
RIG 12 104.8 5 41.67 % 5 41.67 %
GT 10 125.8 4 40.00 % 4 40.00 %
HCP 10 125.8 4 40.00 % 4 40.00 %

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