Bulkowski’s Top 10 Continuation Candlesticks

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Shown are the top ten performing candlestick patterns, based on performance of those that act as continuations of the prevailing price trend in a bull market. 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). Mat hold Theory: Bullish continuation Actual: Bullish continuation 78% of the time Frequency rank: 93 Overall performance rank: 86	2. Deliberation Theory: Bearish reversal Actual: Bullish continuation 77% of the time Frequency rank: 48 Overall performance rank: 93	3. Concealing baby swallow Theory: Bullish reversal Actual: Bearish continuation 75% of the time Frequency rank: 103 (last) Overall performance rank: 101

4. Rising 3 methods Theory: Bullish continuation Actual: Bullish continuation 74% of the time Frequency rank: 88 Overall performance rank: 94	5. Separating lines, bullish Theory: Bullish continuation Actual: Bullish continuation 72% of the time Frequency rank: 76 Overall performance rank: 36	6. Falling 3 methods Theory: Bearish continuation Actual: Bearish continuation 71% of the time Frequency rank: 91 Overall performance rank: 89

7. Doji star, bearish Theory: Bearish reversal Actual: Bullish continuation 69% of the time Frequency rank: 43 Overall performance rank: 51	8. Last engulfing top Theory: Bearish reversal Actual: Bullish continuation 68% of the time Frequency rank: 14 Overall performance rank: 79	9. Two black gapping Theory: Bearish continuation Actual: Bearish continuation 68% of the time Frequency rank: 29 Overall performance rank: 10

10. Side by side white lines, bullish Theory: Bullish continuation Actual: Bullish continuation 66% of the time Frequency rank: 73 Overall performance rank: 46