Bulkowski’s Top 10 Reversal Candlesticks

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Written by and copyright © 2007-2008 by Thomas N. Bulkowski. All rights reserved.

The top 10 performing reversal candlesticks appear below. The information is derived from my book, Encyclopedia of Candlestick Charts, and performance is based on the bull market only. 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.
Image of a three stars in the south candle
1 (best). Three stars in the south
Theory: Bullish reversal
Actual: Bullish reversal 86% of the time
Frequency rank: 99
Overall performance rank: 103
Image of a bearish three line strike candlestick
2. Three line strike, bearish
Theory: Bearish continuation
Actual: Bullish reversal 84% of the time
Frequency rank: 94
Overall performance rank: 1 (best)
Image of a three white soldiers
3. Three white soldiers
Theory: Bullish continuation
Actual: Bullish reversal 82% of the time
Frequency rank: 67
Overall performance rank: 32
Image of a identical three crows candle
4. Identical three crows
Theory: Bearish reversal
Actual: Bearish reversal 79% of the time
Frequency rank: 83
Overall performance rank: 24
Image of a bearish engulfing candle
5. Engulfing, bearish
Theory: Bearish reversal
Actual: Bearish reversal 79% of the time
Frequency rank: 11
Overall performance rank: 91
Image of a morning star candle
6. Morning star
Theory: Bullish reversal
Actual: Bullish reversal 78% of the time
Frequency rank: 66
Overall performance rank: 12
Image of a three black crows candle
7. Three black crows
Theory: Bearish reversal
Actual: Bearish reversal 78% of the time
Frequency rank: 60
Overall performance rank: 3
Image of a morning doji star candle
8. Morning doji star
Theory: Bullish reversal
Actual: Bullish reversal 76% of the time
Frequency rank: 78
Overall performance rank: 25
Image of a three outside up candle
9. Three outside up
Theory: Bullish reversal
Actual: Bullish reversal 75% of the time
Frequency rank: 24
Overall performance rank: 34
Image of an evening star candle
10. Evening star
Theory: Bearish reversal
Actual: Bearish reversal 72% of the time
Frequency rank: 71
Overall performance rank: 4

Copyright © 2007-2008 by Thomas N. Bulkowski. All rights reserved. I used to be schizophrenic, but we’re ok now.