Forex strategies revealed | FSR Forum

does anyone have statistics of candle patterns and probabilities?

also your own back testing overviews and data can be accepted.

What am I asking for???

things like what are the probabilities of a reversal after a pin bar?

what are the probabilities that a candle will continue upward after two bullish candles?

and things like that.. really any statistic you have would be welcome.. I haven't found any good studies online yet.


Thanks!

The statistics of candle patterns and probabilities was done by Thomas N. Bulkowski who published the book called: "Encyclopedia of Candlestick Charts".
It includes around 105 chart patterns.

On author's website you'll be able to find descriptions of those patterns. For example, description of the shooting star, quote:

"...Theoretical performance: Bearish reversal
Tested performance: Bullish continuation 61% of the time
Frequency rank: 51
Overall performance rank: 52
Best percentage meeting price target: 52% (bull market, up breakout)
Best average move in 10 days: -4.93% (bear market, down breakout)
Best 10-day performance rank: 31 (bear market, down breakout)..."
Link: http://thepatternsite.com/ShootingStar2.html

All patterns:
http://thepatternsite.com/CandlesSingle.html
http://thepatternsite.com/Candles2.html
http://thepatternsite.com/Candles3.html

Edward Revy wrote:The statistics of candle patterns and probabilities was done by Thomas N. Bulkowski who published the book called: "Encyclopedia of Candlestick Charts".
It includes around 105 chart patterns.

On author's website you'll be able to find descriptions of those patterns. For example, description of the shooting star, quote:

"...Theoretical performance: Bearish reversal
Tested performance: Bullish continuation 61% of the time
Frequency rank: 51
Overall performance rank: 52
Best percentage meeting price target: 52% (bull market, up breakout)
Best average move in 10 days: -4.93% (bear market, down breakout)
Best 10-day performance rank: 31 (bear market, down breakout)..."
Link: http://thepatternsite.com/ShootingStar2.html

All patterns:
http://thepatternsite.com/CandlesSingle.html
http://thepatternsite.com/Candles2.html
http://thepatternsite.com/Candles3.html

Thanks Edward.. very interesting studies.. and they show me many reasons to not trust candle patterns as much as I have been lol...

Seems like very low probabilities for the most part.. but a small advantage always help!

Candle sticks are good.But only in higher time frame.

It is always better to combine candlestick lines with other confirmation tools such as trendlines, moving averages, etc. They are not usually effective when used only on their own.