As of 04/18/2024
Indus: 37,775 +22.07 +0.1%
Trans: 14,947 -39.62 -0.3%
Utils: 860 +6.95 +0.8%
Nasdaq: 15,602 -81.87 -0.5%
S&P 500: 5,011 -11.09 -0.2%
|
YTD
+0.2%
-6.0%
-2.4%
+3.9%
+5.1%
|
 39,800 or 37,150 by 05/01/202416,200 or 15,000 by 05/01/2024885 or 850 by 05/01/202416,700 or 15,800 by 05/01/20245,250 or 5,025 by 05/01/2024 |
As of 04/18/2024
Indus: 37,775 +22.07 +0.1%
Trans: 14,947 -39.62 -0.3%
Utils: 860 +6.95 +0.8%
Nasdaq: 15,602 -81.87 -0.5%
S&P 500: 5,011 -11.09 -0.2%
|
YTD
+0.2%
-6.0%
-2.4%
+3.9%
+5.1%
| |
|
39,800 or 37,150 by 05/01/202416,200 or 15,000 by 05/01/2024885 or 850 by 05/01/202416,700 or 15,800 by 05/01/20245,250 or 5,025 by 05/01/2024 | ||
In my book,
Encyclopedia of Candlestick Charts
The book takes an in-depth look at 103 candlestick patterns and reports on behavior and rank (3 types: reversal rate, frequency, and overall performance), identification guidelines, performance statistics (tables of general statistics, height, and volume), trading tactics (tables of statistics on reversal rates and performance indicators), and wraps each chapter with a sample trade. I share a sliver of that information below. If you like what you read here, then you will love the book. Help support this website and buy a copy by clicking on the above link.
The bullish meeting lines act in theory as they do in reality -- bullish reversal of the downward price trend. However, the reversal performance is near random, meaning you will not be able to predict the breakout direction ahead of time with any assurance.
Once the upward breakout occurs, price trends, scoring very well for price performance over the coming 10 days, regardless of the bull or bear market conditions. Unfortunately, the frequency rank is 72 out of 103 candlestick types. That makes it somewhat rare, like seeing a hummingbird in Canada during the late fall.
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Theoretical performance: Bullish reversal
Tested performance: Bullish reversal 56% of the time
Frequency rank: 72
Overall performance rank: 18
Best percentage meeting price target: 66% (bull market, up breakout)
Best average move in 10 days: 5.08% (bear market, up breakout)
Best 10-day performance rank: 27 (bull market, up breakout)
All ranks are out of 103 candlestick patterns with the top performer ranking 1. "Best" means the highest rated of the four combinations of bull/bear market, up/down breakouts. The above numbers are based on hundreds of perfect trades. See the glossary for definitions. |
 Bullish Meeting Lines
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The bullish meeting lines candlestick pattern acts as a bullish reversal 56% of the time, which is what I consider "near random." However, once the breakout direction is established, price tends to trend. The best performance 10 days after an upward breakout in a bear market is 5.08%. I consider 6% as being a good move, so this one is a bit short. The best performance rank is 27. That is decent but not spectacular since 1 is the best performance out of 103 candle types.
Considering that just 66% of the time does an upward breakout in a bull market meet the price target, the trend after the breakout may not extend as high as the height of the candle pattern projected upward from the top of the candle. Thus, be modest in your targeting and expectations.
| Characteristic | Discussion |
| Number of candle lines | Two. |
| Price trend leading to the pattern | Downward. |
| Configuration | Look for a tall black candle followed by a tall white candle in an upward price trend. The two closes should be near one another. |
If you want a few bones from my Encyclopedia of candlestick charts book, here are three to chew on. The pages refer to the book where the tips appear.
The chart shows a bullish meeting lines candle pattern, circled in red on the daily scale. The first day is a tall black candle in a downward price trend. Following that is a tall white candle with closing prices between the two candles at or near the same price.
The breakout from this bullish meeting lines candle is downward, joining the downward primary trend. This candlestick pattern acts as a continuation of the price trend. Notice that when the candle pattern breakout and the primary tend both agree, price tends to drop further. Trade with the trend for the highest success rate.
-- Thomas Bulkowski
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"I have never been lost, but I will admit to being confused for several weeks." -- Daniel Boone
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