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.…
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Bearish Breakaway
See our Patterns Dictionary for other patterns. Check our CandleScanner software and start trading candlestick patterns! [caption id="attachment_5676" align="alignright" width="126"] Figure 1. Bearish Breakaway pattern.[/caption] Japanese name: kotsubame tsutsumi Forecast: bearish reversal Trend prior to the pattern: uptrend Opposite pattern: Bullish Breakaway Number of candle lines: 5 Construction: First candle a tall white candle Second…
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Bearish Three-Line Strike
See our Patterns Dictionary for other patterns. Check our CandleScanner software and start trading candlestick patterns! [caption id="attachment_5641" align="alignright" width="126"] Figure 1. Bearish Three-Line Strike pattern.[/caption] Japanese name: santeuchi Forecast: bearish continuation Trend prior to the pattern: downtrend Opposite pattern: Bullish Three-Line Strike Number of candle lines: 4 Construction: First candle a candle in a…
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Concealing Baby Swallow
See our Patterns Dictionary for other patterns. Check our CandleScanner software and start trading candlestick patterns! [caption id="attachment_5537" align="alignright" width="126"] Figure 1. Concealing Baby Swallow pattern.[/caption] Japanese name: kotsubame tsutsumi Forecast: bullish reversal Trend prior to the pattern: downtrend Opposite pattern: none Number of candle lines: 4 Construction: First candle a Black Marubozu candle in…
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