From Encyclopedia of Candlesticks.
The following list shows candle patterns ranked by performance in bull and bear markets over one, three, five, and ten days after the candle ends. The number after the candle is the performance sum.
The theory behind the list is that the best-performing candle patterns will post good numbers in bull and bear markets and over time.
- Three-line strike, bearish: 67.38%
- Three-line strike, bullish: 65.23%
- Three black crows: 59.83%
- Evening star: 55.85%
- Upside Tasuki gap: 54.44%
- Hammer, inverted: 51.73%
- Matching low: 50.00%
- Abandoned baby, bullish: 49.73%
- Two black gapping candles: 49.64%
- Morning star: 49.05%
The three-line strike patterns and the bearish breakaway had fewer than about 100 samples.
Reversals: Bull Market
The top 10 best candles acting as reversals in bull markets are (based on how often price reverses, shown as a percentage):
- Three stars in the South: 86%
- Three-line strike, bearish: 84%
- Three white soldiers: 82%
- Identical three crows: 79%
- Engulfing, bearish: 79%
- Morning star: 78%
