Home Technical Analysis Candle Patterns: Researched Tested & Proven

Candle Patterns: Researched Tested & Proven

Candle patterns are visual formations made up of one or more candlesticks that can be used to predict the direction of future price movements.

Our original candlestick research meticulously explains and tests the most important patterns to reveal success rates, reliability, profitability, and how to trade them.

These articles have an unparalleled depth of analysis and practical applicability to the trading world.

5 Best Candlestick & Chart Pattern Recognition Software 2024

Our 20-point test reveals the best stock chart candlestick pattern recognition software are TrendSpider, TradingView, and Finviz.

Do Tweezer Top & Bottom Candle Patterns Work? I Test It!

Based on our testing of 1,892 trades, the tweezer top and bottom patterns are highly unreliable and unprofitable. These patterns exhibit a reward-to-risk ratio of only 1.07, with 50% of trades resulting in losses. Relying on tweezers as a trading strategy yields poor results.

Heikin-Ashi Candles Explained & Reliablility Tested

Our research shows that Heikin-Ashi charts are better than candlesticks for maximizing returns in trading strategies. We backtested 360 years of data across 30 major, and our findings prove that Heikin-Ashi chart strategies outperform 60% of equities vs. a buy-and-hold strategy.

Hammer Candlesticks Patterns Explained & Reliability Tested

According to 2,219 tested trades, a Hammer is extremely unreliable and unprofitable. It has a low % accuracy rate of 52.1%, resulting in a razor-thin 0.18% profit per trade.

Dragonfly Doji Explained: Is it Reliable? I Test It!

The Dragonfly Doji is a candlestick chart pattern that indicates an equilibrium between buyers and sellers after a day of trading volatility. Our 1,703 test trades prove it can be profitable under the right circumstances, but the margins are thin.

Trading a Doji Candle Explained: I Backtest It For Reliability!

A Doji candlestick chart pattern indicates a battle between buyers and sellers, ending in equilibrium. The Doji marks a potential trend reversal. Is the Doji pattern profitable or accurate? Our evidence suggests its profitability is marginal.

10 Best Candlestick Patterns Proven Successful & Reliable

Our research shows the most reliable and predictive candlestick patterns are the Inverted Hammer, with a 60% success rate, Bearish Marubozu (56.1%), Gravestone Doji (57%), and Bearish Engulfing (57%). The most profitable candle pattern is the Inverted Hammer, with a 1.12% profit per trade.

Bearish Engulfing Candles Explained & Reliability Tested

Our research shows the Bearish Engulfing candle is an accurate and profitable pattern. Our 568 years of data reveals a 57% success rate and an average win of 3.7%.

Is the Bullish Engulfing Candle Worth Trading? We Test It

Our research shows the Bullish Engulfing candle is not as bullish as most traders believe. Based on 568 years of data, it has a 55% success rate and an average win of 3.5%.

Are Bullish Harami Candles Profitable? We Test It?

Our research shows Bullish Harami and Bullish Harami Cross are profitable patterns. Based on 1,112 years of data, the bullish Harami has an average profit per trade of 0.5% and the Harami Cross 0.58%.

We Test Bullish & Bearish Marubozu Candles for Reliability

Our research shows Bearish Marubozu candles are among the most profitable patterns. Based on 568 years of data, it has a 56.1% success rate and an average win of 4.1%. Conversely, the Bullish Marubozu is one of the worst.

We Test the Inverted Hammer Candle Pattern! Is It Worth It?

Our research shows the Inverted Hammer is the most accurate and profitable candlestick pattern. Used as a bullish signal, it has a 60% success rate and an average win of 4.2%, based on 588 years of data.

Shooting Star Candle Pattern Meaning & Reliability Tested

Based on 568 years of data, our research shows the Shooting Star candle is bullish, not bearish, as most traders believe. It has a 57.1% upside success rate and an average winning trade of 3.6%. Each trade made using a shooting star nets an average of 0.56% profit.

Bearish Harami Pattern: 5,624 Trades Tested for Reliability!

Our research shows Bearish Harami and Bearish Harami Cross are profitable patterns. Based on 1,136 years of data, the Bullish Harami has an average profit per trade of 0.48% and the Harami Cross 0.57%.

Gravestone Doji Explained & Reliability Tested!

A Gravestone Doji candle indicates a battle between buyers and sellers and is considered bearish. Our 1,553 test trades prove it is the third most profitable candle pattern. But it does not work as most traders believe.

How to Read Candlestick Charts Using 5 Reliable Patterns

You can read candlestick charts using pattern recognition software to identify five reliable patterns, the Inverted Hammer, Bearish Marubozu, Gravestone Doji, Bearish Engulfing, and Bullish Harami Cross.

Spinning Top Candle Explained & Tested on 9,894 Trades

Our original research found that the Spinning Top candle is a bullish pattern, with a 55.9% success rate and a 3.7% average winning trade. Trading with a Spinning Top yields an average profit of 0.49%, ranking it the 10th best candle to trade.

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TrendSpider Review: Big 2024 Updates! Is It Now The Best?

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