Candlesticks - What Works And Which One Is The Best?

Welcome to our video on candlesticks, where we explore the age-old question: which one actually works and which one is the best?

Candlesticks are a widely used tool for visualizing price movements in financial markets, but many people are still skeptical about their effectiveness.

In this video, we'll provide you with definitive answers by presenting the results of our extensive backtesting of ALL the candlestick patterns. We have ranked the patterns based on their performance using the profit factor metric, and the results are impressive!

We will demonstrate how you can make money using candlestick patterns and how they have provided uncorrelated returns compared to buy and hold strategies, even during recessions or falling markets.

Our research includes logic in plain English and trading results for all 75 candlestick patterns, which can be added to Amibroker or Tradestation code. We offer this research for a moderate fee to help traders like you make informed decisions.

In the S&P 500 market, we found that the top 10 best candlestick patterns had at least 50 trades over the last 30 years, and they yielded a twenty-bagger over the period. This is even better than buy and hold strategies and was achieved by spending just 28% of the time invested.

Moreover, the losses from a recent peak in equity were less than 15%, and the table shows only one losing year. Thus, candlestick patterns have provided uncorrelated returns compared to buy and hold strategies, even during tough market conditions like the 2008 financial crisis.

In conclusion, our backtesting has proven that candlestick patterns work! We hope you found this video informative and quantified. Don't forget to like and subscribe to help us provide more such research. And do watch our next video, where we will showcase 3 free trend-following strategies. Good luck trading!

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Here you can read more about our Candlesticks here:
https://www.quantifiedstrategies.com/candlestick-patterns-tested-and-ranked/

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