Stick Chart Contract For Free

In other words, while line charts simply track price movement over time, candlestick charts provide insight into buying and selling trends over the course of each day (or other unit of time) by showing high and low prices as well as open and close prices.

Our research shows the most reliable and predictive candlestick patterns are the Inverted Hammer, with a 60% success rate, Bearish Marubozu (56.1%), Gravestone Doji (57%), and Bearish Engulfing (57%). The most profitable candle pattern is the Inverted Hammer, with a 1.12% profit per trade.

Candlesticks are often not accurate enough for traders to solely rely on (no tool is 100% accurate). However, by combining candlestick patterns with other methods, such as using StockOdds data, trading Odds can be increased. Investopedia lays out a few other factors here as well.

The pattern requires three candles to form in a specific sequence, showing that the current trend has lost momentum and a move in the other direction might be starting.

A black or filled candlestick means the closing price for the period was less than the opening price; hence, it is bearish and indicates selling pressure. Meanwhile, a white or hollow candlestick means that the closing price was greater than the opening price. This is bullish and shows buying pressure.

The shooting star candlestick is primarily regarded as one of the most reliable and one of the best candlestick patterns for intraday trading. In this type of intra-day chart, you will typically see a bearish reversal candlestick, which suggests a peak, as opposed to a hammer candle which suggests a bottom trend.

5 Powerful Bullish Candlestick Patterns Hammer: The Piercing Pattern: Bullish Engulfing: The Morning Star: The Three White Soldiers: