Category Archives: CandleScanner

How to measure the efficiency of a candlestick pattern?

It’s not enough just to know that a pattern has occurred on the candlestick chart, but also how “well” or “badly” it had performed in the past. In other words, how effective is the signal being generated?

And here, even before going into a heavy duty backtesting analysis, we can check some simple statistics first. As...

Read more

Backtesting Part 2

In this blog article we look we look at how easy it is to set-up the conditions in CandleScanner in order to perform a backtest.

First we need to customize the settings for the backtest, defining the entry and exit conditions. For the sake of illustration we assume the default entry...

Read more