Bulkowski’s Top 10 Performing Candlesticks

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The top 10 performing candlesticks appear below, based on their overall performance rank in both bull and bear markets. The information is derived from my book, Encyclopedia of Candlestick Charts. A rank of 1 is best out of 103 candle patterns. Be sure to return to the home page for more trading information.

Theory refers to how the candle is theoretically supposed to act, based on other (not my book) published sources.

Actual describes how the candle actually acts, based on tests using over 4.7 million candle lines.

Frequency rank tells how often the candle appears when compared to all other candles.

Overall performance rank is a ranking of the sum of performance over 1, 3, 5 and 10 days after the candle ends. Performance measures the change in closing prices over the four time periods.

The black arrow on the figure shows which way price usually moves after the candlestick pattern ends.

1. (best) Three line strike, bearish Theory: Bearish continuation Actual: Bullish reversal 84% of the time Frequency rank: 94 Overall performance rank: 1 (best)	2. Three line strike, bullish Theory: Bullish continuation Actual: Bearish reversal 65% of the time Frequency rank: 95 Overall performance rank: 2	3. Three black crows Theory: Bearish reversal Actual: Bearish reversal 78% of the time Frequency rank: 60 Overall performance rank: 3

4. Evening star Theory: Bearish reversal Actual: Bearish reversal 72% of the time Frequency rank: 71 Overall performance rank: 4	5. Upside Tasuki gap Theory: Bullish continuation Actual: Bullish continuation 57% of the time Frequency rank: 74 Overall performance rank: 5	6. Hammer, inverted Theory: Bullish reversal Actual: Bearish continuation 65% of the time Frequency rank: 61 Overall performance rank: 6

7. Matching low Theory: Bullish reversal Actual: Bearish continuation 61% of the time Frequency rank: 58 Overall performance rank: 8	8. Abandoned baby, bullish Theory: Bullish reversal Actual: Bullish reversal 70% of the time Frequency rank: 92 Overall performance rank: 9	9. Two black gapping Theory: Bearish continuation Actual: Bearish continuation 68% of the time Frequency rank: 29 Overall performance rank: 10

10. Breakaway, bearish Theory: Bearish reversal Actual: Bearish reversal 63% of the time Frequency rank: 98 Overall performance rank: 11