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 | ||
The white candlestick is just another candle line, unremarkable in many respects. It acts as a continuation 51% of the time, which I consider random, and yet it appears often. The frequency rank is 4 out of 103 candles, where 1 is most frequent. The move over 10 days is well down the list, ranking 68, so the white candle does not lead to powerful moves.
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Encyclopedia of Candlestick Charts
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Theoretical performance: Reversal or continuation (indecision)
Tested performance: Continuation 51% of the time
Frequency rank: 4
Overall performance rank: 68
Best percentage meeting price target: 81% (bull market, up breakout)
Best average move in 10 days: -4.82% (bear market, down breakout)
Best 10-day performance rank: 35 (bear market, down 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. |
 White Candle
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As I mentioned in the introduction, the white candle acts randomly, tending toward a continuation just 51% of the time. It occurs often, ranking fourth out of 103 candles but the overall performance rank is worse than mid list: 68.
The white candle meets the measure rule target 81% of the time (which is the candle height added to the top or subtracted from the bottom of the candle, depending on the breakout direction). The best move occurs in a bear market after a downward breakout. The average decline over the 10 days after the breakout is 4.82%, placing it 35 where 1 is best. That is not a bad rank, but the best performing candle patterns show declines averaging over 6%.
| Characteristic | Discussion |
| Number of candle lines | One. |
| Price trend leading to the pattern | None required. |
| Configuration | An average height candle with a white body and shadows shorter than the body. |
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 daily chart of FDX shows two white candles, one at A and the other at, you guessed it, B. They are of average size, white, with upper and lower shadows shorter than the body.
White candle A occurs in a downtrend just two days before the bottom. Candle B occurs in an uptrend after a series of spinning tops highlighted indecision after a strong move up. Price gaps higher after the white candle, suggesting renewed enthusiasm for the stock, but that is short-lived. Price collapses in early April, finding support at the top of the white candle.
-- Thomas Bulkowski
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