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%	Targets    Overview: 12/12/2024     44,200 or 41,750 by 01/01/2025   16,100 or 17,700 by 01/01/2025   1,050 or 975 by 01/01/2025   20,500 or 19,300 by 01/01/2025   6,100 or 5,775 by 01/01/2025
Chart Pattern Indicator: on 12/5/24

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%
Targets    Overview: 12/12/2024     44,200 or 41,750 by 01/01/2025   16,100 or 17,700 by 01/01/2025   1,050 or 975 by 01/01/2025   20,500 or 19,300 by 01/01/2025   6,100 or 5,775 by 01/01/2025
Chart Pattern Indicator: on 12/5/24

Bulkowski on the Long White 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.

I expected the long white day candlestick to behave randomly, but it suggests a continuation of the existing price trend 58% of the time. It appears frequently in a historical price series, so you will be able to find it often. Performance is mid list, though, ranking 53 where 1 is best out of 103 candle patterns.

Long White Day Candlestick: Important Results

Theoretical performance: Continuation Tested performance: Continuation 58% of the time Frequency rank: 10 Overall performance rank: 53 Best percentage meeting price target: 60% (bear market, down breakout) Best average move in 10 days: -6.21% (bear market, down breakout) Best 10-day performance rank: 16 (bear market, down 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 White Day

More

Long White Day Candlestick: Discussion

As I mentioned in the introduction, the long white day candlestick acts as a continuation 58% of the time but it appears frequently, ranking 10th. Overall performance is well down the list from 1. It ranks 53.

Since the candle is a tall one, it only reaches the measure rule price target 60% of the time. That is when you take the height of the candle pattern and add it to the price of the top of the candle or subtract it from the bottom to get a target, depending on the breakout direction.

The best average move occurs after a downward breakout in a bear market. Price drops 6.21% ten days after the breakout. That is a nice move. That also places the 10 day performance rank at 16, which is also quite good.

Long White Day Candlestick: Identification Guidelines

More

Long White 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 white day candles that appear within a third of the yearly low perform best -- page 499.
2. Long white days taller than the median show price that moves almost twice as far after the breakout as those shorter than the median -- page 499.
3. Breakouts below the 50-trading day moving average tend to outperform -- page 501.

Long White Day Candlestick: Example

Candles A and B in the daily chart both appear in an upward price trend. In A, price reverses direction the next day, but in B, price continues higher after a 1-day pause.

The first candle (A) is a reversal because the inbound trend is upward and the breakout is downward. The B candle has upward inbound and outbound trends, so it is a continuation candle.

Notice that the shadows are shorter than the body and that the body is taller than most recent candles.

-- Thomas Bulkowski

More

See Also

• Your candle could be a white marubozu.
• If you prefer, a closing white marubozu?
• Or how about an opening white marubozu?
• Did you forget about the bullish belt hold?
• This could be a normal sized white 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.

Your kid may be an Honor Student, but you're still an idiot.