Candlestick Pattern Research & Backtesting – Liberated Stock Trader https://www.liberatedstocktrader.com Learn Stock Trading & Investing: Original Data Driven Research & Strategies Mon, 11 Aug 2025 15:31:50 +0000 en-US hourly 1 https://wordpress.org/?v=6.8.2 https://www.liberatedstocktrader.com/wp-content/uploads/2021/04/cropped-LST-logo-retina-480-32x32.png Candlestick Pattern Research & Backtesting – Liberated Stock Trader https://www.liberatedstocktrader.com 32 32 How to Read Candlestick Charts Using 5 Reliable Patterns https://www.liberatedstocktrader.com/how-to-read-candlesticks/ https://www.liberatedstocktrader.com/how-to-read-candlesticks/#comments Tue, 08 Oct 2024 06:00:49 +0000 http://www.liberatedstocktrader.com/?p=619 Chart & Analysis VideosYou can read candlestick charts using pattern recognition software to identify five reliable and profitable patterns: the Inverted Hammer, Bearish Marubozu, Gravestone Doji, Bearish Engulfing, and Bullish Harami Cross.]]> https://www.liberatedstocktrader.com/how-to-read-candlesticks/feed/ 11 How to Read Candlestick Charts: Reliable Settings & Patterns Tested nonadult My Data Research Proves Tweezer Candle Patterns Don’t Work! https://www.liberatedstocktrader.com/tweezer-top-bottom-candle-patterns/ Sun, 06 Oct 2024 08:51:42 +0000 https://www.liberatedstocktrader.com/?p=28720 How to Trade Tweezer Top & Tweezer Bottom Candle PatternsBased on my testing of 1,892 trades, the tweezer top and bottom patterns are highly unreliable and unprofitable. These patterns exhibit a reward-to-risk ratio of only 1.07, with 50% of trades resulting in losses. Relying on tweezers as a trading strategy yields poor results.]]> Trading Tweezer Top & Bottom Candle Pattern: We Test Its Profitability. nonadult I Test Bullish & Bearish Marubozu Candle Reliability https://www.liberatedstocktrader.com/marubozu-candle-pattern/ Fri, 04 Oct 2024 12:52:24 +0000 https://www.liberatedstocktrader.com/?p=26391 Marubozu Candles: Bullish vs Bearish, Which Is Best? I Test!My research shows Bearish Marubozu candles are among the most profitable patterns. Based on 568 years of data, it has a 56.1% success rate and an average win of 4.1%. Conversely, the Bullish Marubozu is one of the worst.]]> Marubozu Candle Patterns Explained & Backtested on 4,994 Trades (Research for Day Traders) nonadult 9,894 Trades Test a Spinning Top Candle Pattern’s Reliability https://www.liberatedstocktrader.com/spinning-top-candle/ Sun, 22 Sep 2024 12:11:35 +0000 https://www.liberatedstocktrader.com/?p=26555 Spinning Top Candle Explained. Is it Worth Trading?My original research found that the Spinning Top candle is a bullish pattern, with a 55.9% success rate and a 3.7% average winning trade. Trading with a Spinning Top yields an average profit of 0.49%, ranking it the 10th best candle to trade.]]> The Spinning Top Candlestick: 9,894 Trades Put Its Reliability to the Test! nonadult 10 Best Candle Patterns for Traders Proven Reliable https://www.liberatedstocktrader.com/candle-patterns-reliable-profitable/ https://www.liberatedstocktrader.com/candle-patterns-reliable-profitable/#comments Sat, 21 Sep 2024 06:14:19 +0000 https://www.liberatedstocktrader.com/?p=26444 Successful Candle Patterns Proven Profitable & ReliableMy rigorous testing shows the most reliable candle patterns are the Inverted Hammer (60% success rate), Bearish Marubozu (56.1%), Gravestone Doji (57%), and Bearish Engulfing (57%). The inverted hammer is the most profitable candle pattern, with a 1.12% profit per trade.]]> https://www.liberatedstocktrader.com/candle-patterns-reliable-profitable/feed/ 3 10 Best Candlestick Patterns Proven Reliable & Profitable with 56,680 Trades nonadult Our Data Proves Why Heikin-Ashi Charts Are Best for Traders https://www.liberatedstocktrader.com/heikin-ashi-candles/ https://www.liberatedstocktrader.com/heikin-ashi-candles/#comments Sat, 31 Aug 2024 12:11:54 +0000 https://www.liberatedstocktrader.com/?p=24768 Heikin Ashi ChartsI backtested 360 years of data on the 30 most important US stocks, and our findings prove that Heikin-Ashi chart strategies outperform 66% of equities vs. a buy-and-hold strategy.]]> https://www.liberatedstocktrader.com/heikin-ashi-candles/feed/ 2 Candlestick charts vs. Heikin Ashi charts nonadult 3,735 Bullish Engulfing Candle Trades Test its Reliability https://www.liberatedstocktrader.com/bullish-engulfing-candle/ Thu, 29 Aug 2024 13:40:51 +0000 https://www.liberatedstocktrader.com/?p=26481 Bullish Engulfing Candle: Is It Worth Trading? I Explain It With Data!My research shows the Bullish Engulfing candle is not as profitable as most traders believe. Based on 568 years of data, it has a 55% success rate and an average win of 3.5%.]]> Bullish Engulfing Candle: Meaning, Reliability & Best Settings Based on 3,735 Trades nonadult Is the Shooting Star Candle Worth Trading? My Data Says Yes! https://www.liberatedstocktrader.com/shooting-star-candle/ Thu, 29 Aug 2024 02:13:14 +0000 https://www.liberatedstocktrader.com/?p=26545 The Shooting Star Candle: Is it Reliable? I Test It!Based on my 568 years of backtested data, the Shooting Star candle is profitable. It has a 57.1% upside success rate and an average winning trade of 3.6%. Each trade made using a shooting star nets an average of 0.56% profit.]]> We Test the Shooting Star Candlestick Pattern! Is It Reliable & Profitable for Traders? nonadult Bearish Engulfing Candles Explained & Reliability Tested https://www.liberatedstocktrader.com/bearish-engulfing-candle/ Sat, 04 May 2024 14:13:49 +0000 https://www.liberatedstocktrader.com/?p=26452 Bearish Engulfing Candle: Is It Profitable? I Test It!My research shows the Bearish Engulfing candle is an accurate and profitable pattern. Using 568 years of data, my testing revealed a 57% success rate and an average win of 3.7%.]]> Bearish Engulfing Candlestick: 4,096 Trades Uncover its Profitability nonadult Are Bullish Harami Candles Profitable? I Test It https://www.liberatedstocktrader.com/bullish-harami-patterns/ Sat, 04 May 2024 13:34:42 +0000 https://www.liberatedstocktrader.com/?p=26413 Bullish Harami & Harami Cross Patterns: How to Trade Them Based on the Data.My research indicates that the Bullish Harami and Bullish Harami Cross are profitable patterns. I analyzed 5,624 Harami trades, spanning an impressive 1,112 years of historical data. The Bullish Harami has an average profit per trade of 0.5%, and the Harami Cross has an average profit of 0.58%.]]> Bullish Harami Candle Patterns Explained: I Test Its Day Trading Profitability on 5,624 Trades nonadult