All 75 Candlestick Patterns Quantified And Backtested
We have yet to see many quantified backtests of candlestick patterns. Practically all candlestick "analysis" is based on anecdotal evidence and some random charts showing successful trades (and ignoring the bad ones). Do candlesticks really work?
We decided to find out and we sat down to quantify ALL the candlestick patterns that exist. The result is 75 candlestick patterns with quantified buy signals. We backtested all of them, and you can see the equity curve and max drawdown of the ten best candlestick patterns below.
How do you get access to our research?
You can buy our candlestick research for a discount until midnight Wednesday the 6th of July. It's a lot of work involved in the product and we only sell 30 copies for the rebated price. You can order here:
If you are unsure, we have written an article about our results:
The performance of the ten best candlestick patterns
We backtested the ten best patterns and the result is summarized in this equity curve (S&P 500):
The annual return is almost 11% - much better than the buy and hold of 8% despite being invested only 35% of the time!