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

Testing reveals the best stock chart candlestick pattern recognition software is TrendSpider, TradingView, MetaStock, and Finviz. Tickeron's AI can detect traditional stock chart patterns.

How to Read Candlestick Charts Using Tested & Proven Patterns

To read candlesticks, you need to interpret how their body and wick length translates into the psychology of traders. Knowing which candles are proven reliable with data will also help.

Spinning Top Candle: Is It Accurate? I Test 9,894 Trades!

Our research found that the Spinning Top candle is bullish, 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.

Shooting Star Candle: 1,680 Test Trades Uncover Its Potential

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.

10 Successful Candle Patterns Proven Profitable & Reliable

Our research shows the most reliable and predictive candle chart 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.

Heikin Ashi Candles Proven The Best Strategy with 360 Years of...

Heikin Ashi candle charts are better than candlesticks for maximizing returns in a professional trading strategy. Backtesting 360 years of data across 30 major stocks shows that Heikin Ashi chart strategies outperform 60% of equities vs. a buy-and-hold strategy.

Bullish Engulfing Candle: Is It Worth Trading? 3,735 Trades Tested!

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%.

Bearish Engulfing Candle: Is It Profitable? I Test It!

Research shows the Bearish Engulfing candle is an accurate and profitable pattern. Based on 568 years of data, it has a 57% success rate and an average win of 3.7%.

Bearish Harami: Worth Trading? 1,136 Years of Data Says Yes!

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%.

Inverted Hammer: 1,702 Trades Prove Its The Best Candle Pattern

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.

Bullish Harami Patterns: Profitable? I Test 5,624 Trades!

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%.

Marubozu Candles: Bullish vs Bearish 4,994 Trades Tested

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.

Gravestone Doji: Does It Work? I Test 1553 Trades To See!

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

Hammer Candlestick: Is It Reliable? 2,219 Test Trades Say No!

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: Is it Accurate? I Test 1,703 Trades!

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.

Do Doji Candles Work? 8,029 Test Trades Uncover the Facts!

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

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TradingView Review 2023: Free vs Pro – Is it Worth it?

Our review testing rates TradingView 4.8/5 stars due to its impressive stock chart analysis, automated pattern recognition, screening, backtesting, live trading, and 19 million active users. TradingView is our recommendation for US and international traders.

Stock Rover Review 2023: Is It The Best Stock Screener?

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Trade Ideas Review 2023: Scanning & Holly AI Bot Tested

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TrendSpider Review 2023: We Test If Its The Best?

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Benzinga Pro Review 2023: Why Smart Traders Love It?

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MetaStock Review 2023: Charting, Backtesting & Xenith Tested

This MetaStock review and test reveal an excellent technical analysis charting platform for traders, with 300+ charts and indicators for stocks, ETFs, bonds & forex globally. Metastock has innovative backtesting and forecasting, and Refinitiv/Xenith provides powerful real-time news and screening.