Hello,
list of candlestick pattern for Strong BUY Trade ?
list of candlestick pattern for Strong SELL Trade ?
What your thought on this : ChatGPT - Candlestick Patterns BUY SELL
The significant ones are listed, discussed, displayed and explained here -
4 Likes
The important point to appreciate, IMHO, is that what makes candle patterns “strongest” is entirely context-dependent, i.e. it depends what kind of trading you’re trying to do.
A swing-trader may not have any use for the ones strongest for scalping.
A trend-follower won’t be using the same ones as someone wanting to identify reversals.
So on this question, more than on most, what will help you most will depend on your frame of reference, @shanmugapradeep .
These links may be a good starting-point for you …
4 Likes
They’re all inverse patterns, in pairs, such as “morning star”/“evening star”, “bullish engulfing”/“bearing engulfing”, “tweezer tops”/“tweezer bottoms”, so not really two different questions.
I never found the popular ones any use at all, myself. Especially “engulfing”. Tweezer tops and bottoms perhaps aren’t useless, but they’re just a variant of double tops and bottoms, so that’s not really because they’re a “candle pattern.”
It’s like everything else in trading, really: it’s full of unevidenced opinions and beliefs, often strongly stated, but it’s really difficult (at best) to find any convincing evidence of any directionally predictive value for candle patterns.
I switched to range bars, myself, partly to get away from conventional candle patterns, myself. Some people do this. I’ve never heard of anyone switching back
Do any have a quantifiable edge?
Candlestick patterns reliant on opening gaps do not work in forex or on any market intra-day.
All the rest work OK. But not great on their own.
2 Likes
That’s my conclusion, too.
I find morning and evening stars helpful, and dark cloud cover and piercing line (those are an inverse pair, too, though you probably wouldn’t think so, from their names!).
4 Likes
Some do, according to people like that “Oxford Research” site.
But only very marginally profitable, when you look in detail.
It’s a bit like testing trading systems: it’s really easy to demonstrate 100 or even 500 consecutive instances that are profitable, but when you test 50,000 instances over a decade’s tick data, it’s nearly impossible to prove there’s any benefit from any of them. Sample size is everything, really.
As @TheLoneRangeBar said, it’s one of those subjects on which there’s a lot of unevidenced opinion and belief, some of it often stated as if it were factual, but precious little evidence.
As against that, I’ve certainly known successful traders who have used candle patterns like a couple of the ones mentioned above, as part of their armoury, to trade post-retracement trend-resumptions on fast charts (that’s my bias, as a scalper), and it’s no secret that some proprietary funds and hedge funds do this successfully, but at the end of the day (and throughout it!) only the order-book moves prices.
2 Likes
I agree. Only the order book/order flow will dictate price discovery.
If there was a bias to profitability based on instances like historical price patterns, there wouldn’t be a counterparty & enough liquidity to trade, causing slippage until bid&ask will balance out.
Ie; Buying the break of a bullish pin bar, sellers would pull liquidity similar to a risk event (like a news release), causing the lowest offer to be much higher, costing the pattern trader.
2 Likes
Some of the strongest candlestick patterns used by traders for spotting reversals or entries include:
- Engulfing Pattern (Bullish/Bearish) – A strong reversal signal when a large candle fully “engulfs” the previous one.
- Pin Bar (Hammer/Inverted Hammer / Shooting Star) – Shows rejection of a price level; great for identifying turning points.
- Doji – Signals indecision, especially powerful at support/resistance zones.
- Morning Star / Evening Star – A three-candle pattern showing strong trend reversals.
- Marubozu – A full-bodied candle showing strong momentum in one direction (no wicks).
These patterns become even stronger when they appear near key levels like support, resistance, trendlines, or after a strong trend. Always confirm with volume or indicators before acting.
1 Like
I use Marabozu, Engulfing, Morning star, Hanging man.
1 Like
Nice!
For others to review.
2 Likes