As of 12/20/2024
Indus: 42,840 +498.02 +1.2%
Trans: 15,892 +32.54 +0.2%
Utils: 986 +14.76 +1.5%
Nasdaq: 19,573 +199.83 +1.0%
S&P 500: 5,931 +63.77 +1.1%
|
YTD
+13.7%
0.0%
+11.9%
+30.4%
+24.3%
|
 44,200 or 41,750 by 01/01/2025 16,100 or 17,700 by 01/01/20251,050 or 975 by 01/01/202520,500 or 19,300 by 01/01/20256,100 or 5,775 by 01/01/2025 |
As of 12/20/2024
Indus: 42,840 +498.02 +1.2%
Trans: 15,892 +32.54 +0.2%
Utils: 986 +14.76 +1.5%
Nasdaq: 19,573 +199.83 +1.0%
S&P 500: 5,931 +63.77 +1.1%
|
YTD
+13.7%
0.0%
+11.9%
+30.4%
+24.3%
| |
|
44,200 or 41,750 by 01/01/202516,100 or 17,700 by 01/01/20251,050 or 975 by 01/01/202520,500 or 19,300 by 01/01/20256,100 or 5,775 by 01/01/2025 | ||
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Encyclopedia of Candlestick Charts
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Below the stomach candlestick is the inverted variety of the above the stomach pattern, only below the stomach does not perform as well. Below the stomach acts as a bearish reversal of the up trend just 60% of the time. The overall performance ranks 59th, or about mid list where a performance rank of 1 is best out of 103 candlestick types. My guess is this candle pattern works best as an upward retrace in a downward price trend. That way, price rejoins the downward movement of the primary trend after the breakout.
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Theoretical performance: Bearish reversal
Tested performance: Bearish reversal 60% of the time
Frequency rank: 38
Overall performance rank: 59
Best percentage meeting price target: 60% (bull market, up breakout)
Best average move in 10 days: 4.81% (bear market, up breakout)
Best 10-day performance rank: 32 (bear 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. |
Below The Stomach
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Below the stomach candle pattern is a disappointing candlestick when compared to its sister, the above the stomach pattern. Below the stomach functions as a bearish reversal 60% of the time. The overall performance rank is 59, well down the list from the candle with the best performance rank, 1. However, the pattern does appear frequently, ranking 38.
The best average move 10 days after a breakout is a rise of 4.81% in a bear market, scoring a rank of 32 in the process. The rise also falls short of the 6% or higher moves that I like to see. Once price breaks out, it trends but not for too long.
| Characteristic | Discussion |
| Number of candle lines | Two. |
| Price trend leading to the pattern | Upward. |
| Configuration | Look for a tall white candle followed by a candle that has a body below the middle of the white candle. Pictures show the second candle as black, but the guidelines I saw did not mention this as a requirement. |
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 of 3M appears on the daily scale. Circled in red is the below the stomach candlestick pattern.
The uptrend leading to the start of the pattern lasts for just a few days before the tall white candle shows. Following that, a black candle with its opening and closing prices appears, showing a body below the mid point of the white candle from the day before. Price trends horizontally for a week after the below the stomach candle before making a straight-line run down.
The setup shown here, an upward retrace in a downward price trend, is the preferred one. When price breaks out downward (which means a close below the lowest low in the candle pattern), price rejoins the downward primary trend already in progress.
-- Thomas Bulkowski
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