3 Bullish Candlestick Patterns That Work — Backtesting and Historical Performance Insights and Analysis
This article shows you 3 bullish candlestick patterns that work. It turns out, perhaps surprisingly, that some candlestick patterns work reasonably well. We test Bearish Engulfing Pattern, Three Outside Down, and Bullish Harami.
We backtest the following trading rules:
Yesterday’s close is bigger than yesterday’s open, and
Today’s close is lower than today’s open, and
Today’s open is higher than yesterday’s close, and
Today’s close is lower than yesterday’s open
Below is the equity curve and drawdown for the strategy.
You can find more info about this trading strategy here:
https://www.quantifiedstrategies.com/3-bullish-candlestick-patterns-that-work/