The Most Reliable Candlestick Pattern: Ranking the Top Performing Techniques

Choose the Candlestick Pattern you think is the most reliable!

Author: Gregor Krambs
Updated on Mar 21, 2024 07:45
Welcome to StrawPoll, where your opinions light up the world! We're igniting a fiery debate on the most reliable Candlestick Pattern in the trading universe. With thousands of polls and rankings on a plethora of topics, we're now turning our gaze towards the mystical, time-tested art of Candlestick charting. We invite passionate traders and curious observers alike to cast their votes for the most dependable Candlestick Pattern, or even suggest an overlooked gem. Are you a believer in the bullish Hammer or a devotee of the enigmatic Doji? Let your convictions burn bright and join the illuminating discussion by diving into our comprehensive ranking list. The flame of knowledge awaits you!

What Is the Most Reliable Candlestick Pattern?

  1. 1
    34
    votes
    A bullish engulfing pattern occurs when a small red candlestick is followed by a larger green candlestick that completely engulfs the previous candlestick. This pattern indicates a potential trend reversal to the upside.
    The Bullish Engulfing Pattern is a popular and reliable candlestick pattern used in technical analysis to identify potential bullish reversal signals on price charts. It is formed by two consecutive candlesticks, where the second candle completely engulfs the body of the previous candle.
    • Pattern Type: Reversal
    • Candlestick Color: First candle: Bearish (red or black) / Second candle: Bullish (green or white)
    • First Candle: Bearish candle with a relatively large real body
    • Second Candle: Bullish candle with a larger real body than the first candle
    • Engulfing Condition: The second candle covers the entire range (open to close) of the first candle
  2. 2
    25
    votes
    A bearish engulfing pattern is the opposite of a bullish engulfing pattern. It occurs when a small green candlestick is followed by a larger red candlestick that completely engulfs the previous candlestick. This pattern indicates a potential trend reversal to the downside.
    The Bearish Engulfing Pattern is a widely recognized candlestick pattern in technical analysis that indicates a possible trend reversal from bullish to bearish. It typically occurs at the top of an uptrend and consists of two candlesticks. The first candlestick is a smaller bullish candle, followed by a larger bearish candle that completely engulfs the body of the previous candle, including the shadows. The bearish engulfing pattern suggests a shift in sentiment from buyers to sellers, indicating a potential downward movement in the price.
    • Pattern Type: Reversal
    • Candlestick Types: Bullish followed by Bearish
    • Signal Strength: Strong
    • Confirmation: Required
    • Trend Direction: Uptrend
  3. 3
    17
    votes

    Hammer Pattern

    Japanese rice traders
    A hammer pattern is a bullish reversal pattern that forms at the bottom of a downtrend. It has a small real body, a long lower shadow, and little to no upper shadow. This pattern indicates that buyers have entered the market and are pushing prices higher.
    The hammer pattern is a bullish candlestick pattern that signifies a potential reversal in a downtrend. It consists of a single candle with a small body, a long lower shadow, and little to no upper shadow. The small body appears at the upper end of the trading range, while the long lower shadow extends below the body. The pattern resembles a hammer, hence the name.
    • Type: Bullish reversal pattern
    • Significance: High
    • Confirmation: Followed by an uptrend
    • Body color: Irrelevant (often green or white)
    • Upper shadow: Little to none
  4. 4
    19
    votes
    A shooting star pattern is a bearish reversal pattern that forms at the top of an uptrend. It has a small real body, a long upper shadow, and little to no lower shadow. This pattern indicates that sellers have entered the market and are pushing prices lower.
    The Shooting Star pattern is a bearish reversal pattern that forms during an uptrend, signaling a potential trend reversal. It is characterized by a small body that is located at the lower end of the price range, a long upper shadow, and little to no lower shadow. The upper shadow should be at least two times the length of the body. The pattern derives its name from the resemblance of a shooting star, with the body representing the star and the long upper shadow resembling a tail.
    • Pattern type: Bearish reversal
    • Formation: Occurs during an uptrend
    • Body size: Small
    • Upper shadow length: At least two times the length of the body
    • Lower shadow: Little to no lower shadow
  5. 5
    20
    votes
    A doji candlestick pattern occurs when the open and close prices are the same or very close to each other. This pattern indicates indecision in the market and can signal a potential trend reversal.
    The Doji Candlestick Pattern is a single candlestick pattern that represents uncertainty and indecision in the market. It is formed when the opening and closing prices of an asset are very close or equal, resulting in a small or nearly non-existent body with long upper and lower shadows.
    • Formation: The Doji pattern is formed when the opening and closing prices of an asset are very close or equal, resulting in a small or non-existent body.
    • Shape: The Doji candlestick has a small or non-existent body with long upper and lower shadows.
    • Indicates Indecision: The Doji pattern suggests that the market is in a state of indecision, with buyers and sellers being evenly matched.
    • Bearish Doji: A Doji with a long upper shadow indicates potential bearish reversal.
    • Bullish Doji: A Doji with a long lower shadow indicates potential bullish reversal.
  6. 6
    13
    votes

    Morning Star Pattern

    Japanese candlestick chartists
    A morning star pattern is a bullish reversal pattern that forms at the bottom of a downtrend. It consists of a long red candlestick, followed by a small real body candlestick, and ends with a long green candlestick. This pattern indicates a potential trend reversal to the upside.
    The Morning Star pattern is a bullish reversal pattern commonly found in candlestick charts. It consists of three candles and signals a potential trend reversal from bearish to bullish. The pattern is named after the observation that it often occurs at the bottom of a downtrend, symbolizing the hope of a new day.
    • Number of candles: Three
    • 1st candle: A bearish candle with a long body signifying the existing downtrend
    • 2nd candle: A small-bodied candle with a gap down from the previous candle, representing indecision
    • 3rd candle: A bullish candle with a long body, which closes above the midpoint of the 1st candle's body
    • Confirmation: The pattern is confirmed if the following candle opens further higher
  7. 7
    9
    votes
    An evening star pattern is a bearish reversal pattern that forms at the top of an uptrend. It consists of a long green candlestick, followed by a small real body candlestick, and ends with a long red candlestick. This pattern indicates a potential trend reversal to the downside.
    The Evening Star pattern is a bearish reversal pattern that forms at the end of an uptrend. It is composed of three candlesticks and signifies a potential trend reversal from bullish to bearish.
    • Candlestick Sequence: 1. The first candle is a large bullish candle, indicating strong buying pressure. 2. The second candle is a small-bodied candle, which may be bullish or bearish, and it gaps above the first candle. 3. The third candle is a large bearish candle, indicating strong selling pressure. It gaps below the second candle.
    • Confirmation: The Evening Star pattern is considered more reliable if the third candle closes below the midpoint of the first candle.
    • Size of Candles: The larger the first and third candles, the more significant the pattern.
    • Volume: Increasing volume during the formation of the pattern adds to its reliability.
    • Location: The Evening Star pattern is more significant when it occurs after a prolonged uptrend.
  8. 8
    2
    votes
    A bullish harami pattern occurs when a small red candlestick is followed by a larger green candlestick that has a smaller real body than the previous candlestick. This pattern indicates a potential trend reversal to the upside.
    The Bullish Harami Pattern is a bullish reversal candlestick pattern that consists of two candles. The first candle is a large bearish candle, followed by a second smaller bullish candle that is completely engulfed within the body of the first candle. This pattern suggests a potential trend reversal from bearish to bullish.
    • Pattern Type: Reversal
    • Candlestick Setup: Two candles
    • First Candle: Large bearish candle
    • Second Candle: Small bullish candle
    • Engulfing: Second candle completely engulfs the first
  9. 9
    4
    votes
    A bearish harami pattern is the opposite of a bullish harami pattern. It occurs when a small green candlestick is followed by a larger red candlestick that has a smaller real body than the previous candlestick. This pattern indicates a potential trend reversal to the downside.
    The Bearish Harami Pattern is a candlestick pattern that indicates a potential reversal of an uptrend. It is formed by two candlesticks, with the first candlestick being a long bullish candle and the second candlestick being a small bearish candle completely contained within the range of the first candlestick.
    • Pattern Type: Reversal
    • First Candlestick: Bullish
    • Second Candlestick: Bearish
    • Size of Second Candlestick: Small
    • Second Candlestick's Range: Completely within the first candlestick's range
  10. 10
    9
    votes

    Piercing Line Pattern

    Japanese rice traders
    A piercing line pattern is a bullish reversal pattern that occurs after a downtrend. It consists of a long red candlestick followed by a green candlestick that opens below the previous candlestick's low and closes above its midpoint. This pattern indicates a potential trend reversal to the upside.
    The Piercing Line pattern is a bullish reversal pattern that appears in candlestick charts. It is formed by two candles, where the first is a large bearish candle, and the second is a bullish candle that opens lower than the previous close but closes above the midpoint of the first candle. This pattern suggests a potential trend reversal from bearish to bullish.
    • Pattern type: Bullish reversal
    • Candlestick count: Two candles
    • First candle color: Bearish (red or black)
    • Second candle color: Bullish (green or white)
    • Second candle open: Lower than the previous close

Missing your favorite Candlestick Pattern?

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Ranking factors for reliable Candlestick Pattern

  1. Context
    The context within which the candlestick pattern appears is important. It is important to look at the preceding market activity, the overall trend, and any other relevant market indicators to determine if the pattern is of significance.
  2. Confirmation
    The confirmation of the candlestick pattern by other technical analysis tools increases its reliability.
  3. Size
    The size of the candlestick and its relationship with neighboring candles is important. Larger patterns tend to be more reliable.
  4. Frequency
    The frequency with which the pattern appears is also important. Patterns that appear more frequently tend to be more reliable.
  5. Position
    The position of the pattern on the chart is another important factor. Patterns that appear at important support or resistance levels tend to be more reliable.

About this ranking

This is a community-based ranking of the most reliable Candlestick Pattern. We do our best to provide fair voting, but it is not intended to be exhaustive. So if you notice something or Candlestick is missing, feel free to help improve the ranking!

Statistics

  • 1662 views
  • 152 votes
  • 10 ranked items

Voting Rules

A participant may cast an up or down vote for each Candlestick once every 24 hours. The rank of each Candlestick is then calculated from the weighted sum of all up and down votes.

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More information on most reliable candlestick pattern

Candlestick charts were first introduced in Japan in the 1700s, and they have since become a popular tool for technical analysis in the financial markets. Candlestick patterns are formed by the price movements of an asset over a specific period of time, and they can be used to identify potential market trends and reversals. The most reliable candlestick patterns are those that have been consistently observed and tested over time, and they can provide valuable insights for traders and investors. In this article, we will explore some of the most reliable candlestick patterns and how they can be used to make informed trading decisions.

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