Скачать или смотреть Candlestick + Chart Patterns | Reversals and Continuations | Trade Bullish, Bearish Strategies

Success Rates of Top Candlestick Patterns

Candlestick patterns are widely used in technical analysis to predict potential price movements in financial markets. The success rates of these patterns can vary depending on market conditions, time frame, and the asset being traded. Below are some popular candlestick patterns and their general success rates:

1. Bullish engulfing:

Description: A two-candle pattern where a small bearish candle is followed by a large bullish candle that completely engulfs the previous candle.

Success rate: Approximately 60-70% in trending markets. It signals a potential reversal from a downtrend to an uptrend.

2. Bearish engulfing:

Description: The opposite of a bullish engulfing, where a small bullish candle is followed by a large bearish candle.

Success rate: Approximately 60-70% in trending markets. It indicates a possible reversal from an uptrend to a downtrend.

3. Hammer:
Description: A single candle with a small body and a long lower wick, appearing after a downtrend.
Success rate: Approximately 60-65%. It suggests a possible bullish reversal.

4. Shooting Star:
Description: A single candle with a small body and a long upper wick, appearing after a uptrend.
Success rate: Approximately 60-65%. It indicates a possible bearish reversal.

5. Doji: - Description: A candlestick with a very short body, indicating indecision in the market.
Success rate: Varies widely (50-60%). It is most effective when combined with other indicators or patterns.

6. Morning Star:
Description: A three-candle pattern consisting of a long bearish candle, a short indecisive candle, and a long bullish candle.
Success rate: Approximately 65-75%. It signals a potential bullish reversal.

7. Evening Star:
Description: The bearish counterpart of the Morning Star, consisting of a long bullish candle, a short indecisive candle, and a long bearish candle.
Success rate: Approximately 65-75%. It signals a potential bearish reversal.

Chart Patterns and Their Success Rates

Chart patterns are formations on price charts that traders use to predict future price movements. These patterns are categorized into continuation and reversal patterns. Below are some common chart patterns and their success rates:

1. Head and Shoulders:

Description: A reversal pattern with three peaks, where the middle peak (the head) is the highest and the two outer peaks (the shoulders) are lower.

Success rate: Approximately 70-80%. It signals a possible reversal from an uptrend to a downtrend.

2. Inverse Head and Shoulders:
Description: The bullish counterpart to the head and shoulders pattern, indicating a potential reversal from a downtrend to an uptrend.
Success Rate: Around 70-80%.

3. Double Top:
Description: A reversal pattern with two peaks at approximately the same price level, indicating a potential bearish reversal.
**Success Rate**: Approximately 60-70%.

4. Double Bottom:
Description: The bullish counterpart to the double top, indicating a potential bullish reversal.
Success Rate: Around 60-70%.

5. Triangles (Symmetrical, Ascending, Descending):
Description: Continuation patterns formed by converging trendlines, indicating a potential breakout in the direction of the prevailing trend.
Success Rate: Approximately 60-75%, depending on the type of triangle and market conditions.

6. Flags and Pennants:
Description: Short-term continuation patterns that indicate a brief consolidation before the resumption of the prior trend.
Success Rate: Around 70-80%.

7. Cup and Handle:
Description: A bullish continuation pattern resembling a cup with a handle, indicating a potential breakout to the upside.
Success Rate: Approximately 65-75%.

8. Wedges (Rising and Falling):
Description: Reversal patterns formed by converging trendlines, indicating a potential reversal in the opposite direction of the wedge.
Success Rate: Around 60-70%.

Key Considerations:
Confirmation: Always wait for confirmation (e.g., a breakout or close beyond a key level) before acting on a pattern.
Volume: Volume can significantly enhance the reliability of a pattern. For example, a breakout with high volume is more likely to succeed.
Market Context: Patterns are more reliable when they align with the overall market trend and other technical indicators.


Candlestick patterns success rate
Chart patterns for trading
Bullish and bearish candlestick patterns
How to read candlestick charts
Best chart patterns for day trading
Reversal and continuation patterns
Technical analysis for beginners
Trading strategies with candlesticks
Double top and double bottom patterns
Head and shoulders pattern explained
Hammer and shooting star candlestick
Cup and handle pattern trading
Flags and pennants chart patterns
Triangle patterns in trading
Morning star and evening star patterns