Turn Down

See our Patterns Dictionary for other patterns.

Check our CandleScanner software and start trading candlestick patterns!

Figure 1.

Figure 1. Turn Down pattern.

Forecast: bearish reversal
Trend prior to the pattern: uptrend
Opposite pattern: Turn Up

Construction:

  • First candle
    • any candle in an uptrend except the Four-Price Doji
    • a candle with a body above the trendline
  • Second candle
    • black body
    • a candle with a body below the trendline

 

This article is devoted to the Turn Down two-line pattern.

The Turn Down pattern is a bearish reversal pattern. It was discovered by the CandleScanner team during the development of the software. It is included in the list of CandleScanner supported patterns due to its good efficiency and high frequency, which makes it potentially attractive for traders.

Whenever we are writing about pattern confirmation, we mention that it can be for example in the form of a trendline break. The Turn Down pattern, and its bullish counterpart, the Turn Up pattern, acts exactly like that.

The first candle of the pattern can be any basic candle except the Four-Price Doji. It can appear either as a long or as a short line. Its whole body has to be located above the trendline, although its lower shadow can reach below it.

The second line of the pattern has to be a black candle, appearing either as a long or a short line, except the Four-Price Doji. The body of the candle has to be entirely placed below the trendline. The volume of the second candle should be above the average of the last candles.

Size of the bodies does not matter. As usual, however, the market context in which the pattern appeared is critical.

The Turn Down pattern requires a confirmation on the following candles, in the form of breaking the nearest support level.

It happens that a price gap is formed between the first and the second line of the pattern. In such cases, the pattern reliability is higher, assuming that it does not appear within a strong support zone.

The pattern reliability decreases when the market goes back above the trendline.

 

Figure 2.

Figure 2. A Turn Down pattern appeared within the strong support area formed by a Long White Candle (1). Support area slowed down the prices decline. Then appearance of a Long Black Candle, developed at a high volume, broken the support area opening the way for the bears.

 

Figure 3.

Figure 3. Until the Closing White Marubozu occurrence, the market is in a clear downtrend. Black candles formed a resistance zone.
The first occurrence of a Turn Up pattern is stopped by the mentioned Closing White Marubozu , which acts as a local support area.
The second appearance of the Turn Up pattern also is formed within a resistance area. However, again it is stopped, this time by the occurrences of basic candles: Short White Candle and White Candle.

 

Turn Down statistics

Below you can find some Turn Down 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: Turn Down
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 (Turn Down): 24,305
Number of occurrences (all candlestick patterns): 638,570
% of occurrences (Turn Down): 3.81 %
Average frequency: 92.0
Efficiency statistics (5 candlesticks testing period)

Efficiency NO DATA FALSE LOW MEDIUM HIGH
Number of
Occurrences
83 4,492 7,602 4,702 7,426
% of
Occurrences
0.34 % 18.14 % 31.28 % 19.35 % 30.89 %

 

Efficiency statistics (10 candlesticks testing period)

Efficiency NO DATA FALSE LOW MEDIUM HIGH
Number of
Occurrences
95 4,191 6,347 4,208 9,464
% of
Occurrences
0.39 % 16.85 % 26.11 % 17.31 % 39.34 %

 

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
ADSK 53 95.0 31 58.49 % 33 62.27 %
NFX 54 93.1 28 51.85 % 32 61.11 %
JCI 63 79.9 29 46.02 % 37 58.73 %
AMZN 55 82.9 27 50.91 % 31 58.18 %
TROW 56 89.9 22 41.07 % 31 57.14 %
AMAT 59 85.3 30 50.86 % 33 55.94 %
EBAY 51 82.7 21 41.17 % 28 54.89 %
WMB 57 88.3 25 43.86 % 31 54.38 %
SLB 65 77.4 31 47.70 % 35 53.85 %
ESV 56 89.9 30 53.58 % 30 53.57 %

 

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
MCHP 62 81.2 22 35.48 % 22 35.48 %
CTXS 54 91.2 19 35.19 % 19 35.19 %
SIG 51 91.1 17 33.33 % 17 33.33 %
FITB 56 89.9 18 32.14 % 17 30.36 %
MU 63 79.9 19 30.16 % 19 30.16 %
RL 51 89.1 15 29.41 % 15 29.41 %
RCL 59 85.3 17 27.12 % 17 27.12 %
AAPL 56 89.9 16 28.57 % 16 28.57 %
MOS 60 83.9 17 28.33 % 17 28.33 %
JNPR 51 79.0 14 27.45 % 14 27.45 %
Pattern name: Turn Down
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 (Turn Down): 8,044
Number of occurrences (all candlestick patterns): 166,328
% of occurrences (Turn Down): 4.84 %
Average frequency: 76.3
Efficiency statistics (5 candlesticks testing period)

Efficiency NO DATA FALSE LOW MEDIUM HIGH
Number of
Occurrences
82 1,318 3,058 1,710 1,876
% of
Occurrences
1.02 % 15.36 % 38.02 % 21.26 % 24.34 %

 

Efficiency statistics (10 candlesticks testing period)

Efficiency NO DATA FALSE LOW MEDIUM HIGH
Number of
Occurrences
94 1,155 2,512 1,582 2,701
% of
Occurrences
1.17 % 13.19 % 31.23 % 19.67 % 34.74 %

 

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
JCI 19 66.2 11 57.89 % 15 78.95 %
JPM 20 62.9 11 60.00 % 14 75.00 %
NFX 19 66.2 10 52.63 % 13 73.69 %
TXT 19 66.2 9 52.64 % 13 73.68 %
GNW 17 74.0 11 64.71 % 12 70.60 %
NFLX 16 78.6 10 62.50 % 11 68.75 %
PBI 19 66.2 7 36.84 % 13 68.42 %
ESV 17 74.0 11 64.71 % 11 64.71 %
NOV 17 74.0 8 47.06 % 11 64.71 %
PFG 17 74.0 5 29.41 % 11 64.71 %

 

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
MRK 18 69.9 6 27.77 % 6 27.77 %
VAR 22 57.2 7 31.82 % 7 31.82 %
BBT 19 66.2 6 26.32 % 6 26.32 %
AMP 16 78.6 5 31.25 % 5 31.25 %
GT 16 78.6 5 25.00 % 5 25.00 %
K 16 78.6 5 25.00 % 5 25.00 %
BLK 23 54.7 7 30.43 % 7 30.43 %
LNC 20 62.9 7 30.00 % 6 20.00 %
MHK 20 62.9 6 30.00 % 6 30.00 %
HRS 27 46.6 8 29.63 % 8 29.63 %

Comments are closed.