As of 04/22/2024   Indus: 38,240 +253.58 +0.7%     Trans: 15,224 +140.68 +0.9%     Utils: 883 +7.72 +0.9%     Nasdaq: 15,451 +169.30 +1.1%     S&P 500: 5,011 +43.37 +0.9%	YTD  +1.5%   -4.2%    +0.2%    +2.9%    +5.0%	Targets    Overview: 04/12/2024     39,800 or 37,150 by 05/01/2024   16,200 or 15,000 by 05/01/2024   885 or 850 by 05/01/2024   16,700 or 15,800 by 05/01/2024   5,250 or 5,025 by 05/01/2024
Chart Pattern Indicator: on 4/1/24

As of 04/22/2024   Indus: 38,240 +253.58 +0.7%     Trans: 15,224 +140.68 +0.9%     Utils: 883 +7.72 +0.9%     Nasdaq: 15,451 +169.30 +1.1%     S&P 500: 5,011 +43.37 +0.9%	YTD  +1.5%   -4.2%    +0.2%    +2.9%    +5.0%
Targets    Overview: 04/12/2024     39,800 or 37,150 by 05/01/2024   16,200 or 15,000 by 05/01/2024   885 or 850 by 05/01/2024   16,700 or 15,800 by 05/01/2024   5,250 or 5,025 by 05/01/2024
Chart Pattern Indicator: on 4/1/24

Bulkowski on the Long Black Day Candle Pattern

In my book, Encyclopedia of Candlestick Charts, pictured on the right, I explore the entire range of candlestick patterns from abandoned babies to windows (not exactly A to Z, but you get the idea), in both bull and bear markets, using almost 5 million candle lines in the tests.

The book takes an in-depth look at 103 candlestick patterns and reports on behavior and rank (3 types: reversal rate, frequency, and overall performance), identification guidelines, performance statistics (tables of general statistics, height, and volume), trading tactics (tables of statistics on reversal rates and performance indicators), and wraps each chapter with a sample trade. I share a sliver of that information below. If you like what you read here, then you will love the book. Help support this website and buy a copy by clicking on the above link.

The long black day is like many other candles: ordinary. It acts as a continuation of the existing price trend 53% of time, but it excels at being all over the place, like commercials from politicians as election day nears. Overall performance ranks 19th out of 103 where 1 is best, so it holds up well on that score.

Long Black Day Candlestick: Important Results

Theoretical performance: Continuation Tested performance: Continuation 53% of the time Frequency rank: 9 Overall performance rank: 19 Best percentage meeting price target: 62% (bull market, up breakout) Best average move in 10 days: 6.3% (bear market, up breakout) Best 10-day performance rank: 8 (bull 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.

Long Black Day

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Long Black Day Candlestick: Discussion

The long black day is a candlestick that is, well, long and black. It acts as a continuation of the price trend 53% of the time, matching theory with reality. It occurs frequently, ranking 9th and overall performance ranks 19th. In all cases, the tally is out of 103 candlestick types with 1 being best.

Since it is a tall day, the measure rule price target falls short of exciting. Only 62% of the time does price move far enough after the breakout to reach the target. However, after an upward breakout in a bear market, price soars 6.3%, on average, over the next 10 days, but the best performance rank is 8, and it belongs to the long black day after an upward breakout in a bull market.

Long Black Day Candlestick: Identification Guidelines

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Long Black Day Candlestick: Three Trading Tidbits

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.

1. Long black days that appear within a third of the yearly low perform best -- page 491.
2. Upward breakouts from long black days that reverse an existing downtrend tend to do well -- page 490.
3. Long black days within a third of the yearly low act often as continuations of the primary trend -- page 493.

Long Black Day Candlestick: Example

The chart shows two long black days, A and B, on the daily scale. Both appear in a downward price trend and both breakout downward. A breakout occurs when price closes either above the top or below the bottom of the candlestick.

Each candle is tall and black with shadows shorter than the body. In this example, both act as continuations of the existing downward price trend.

-- Thomas Bulkowski

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See Also

• Your candle could be a black marubozu.
• If you prefer, a closing black marubozu?
• Or how about an opening black marubozu?
• Did you forget about the bearish belt hold?
• This could be a normal sized black candle, too.
• Tall candles show support and resistance.
• Two candlestick tips could improve profitability.
• Candles near the yearly low perform best.
• Chart pattern breakouts: Which candlesticks appear most often the day before breakouts?
• Shadows. Do tall candle shadows predict price turns? Yes and no.
• Tall candles at peaks and valleys. Tall candles appear at turning points.

 

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