Narrow Range Candles
by PRASHANT SHAH -
A candle’s range is the difference between its high and low price. A higher range indicates a strong trend or increased volatility during the session. Low range shows a lackluster price trend and a lack of momentum. Generally, this does not relate to candlestick patterns, but rather the range of candles is analyzed by participants ... Read more
Wide Range Candles
by PRASHANT SHAH -
W4 W4 stands for Wide Range 4. A W4 pattern is qualified if the candle’s range is the highest in the last 4 sessions. The difference between the high and low of the current session is the highest in the last four sessions. It shows that the trend is strong and momentum is in favor. ... Read more
Back-testing of candlestick patterns
by PRASHANT SHAH -
We have discussed various candlestick patterns. Many such patterns exist, and new patterns are continually being developed. People use it in different ways. There are many traders who perform subjective analysis, who observe patterns and make decisions based on their observations. Some traders use it in conjunction with other tools and indicators. Some traders create ... Read more
Hammer Pattern data
by PRASHANT SHAH -
Single candlestick pattern performance data was interesting to study. Below are some observations. Hammer & Inverted Hammer The Hammer and Inverted Hammer patterns were tested for both bullish and bearish sides. Patterns were not filtered for trend; testing was solely conducted based on patterns. As discussed earlier, Hammer patterns form after a downtrend. It is ... Read more
Nifty Candlestick Pattern Back-testing
by PRASHANT SHAH -
I backtested the patterns on the Nifty daily candlestick chart to analyse the performance. Criteria of testing is the same but it is tested on daily candlestick chart of Nifty 50 index. This write-up is divided into two parts: The performance data is further divided into four segments Occurrences Below are the bullish single candlestick ... Read more
Top Bullish & Bearish Patterns
by PRASHANT SHAH -
In order to gain an understanding of the performance of candlestick patterns on stocks and Nifty, performance data of patterns was discussed. It is true that some patterns have a better performance ratio, but they are not very common. Some of them are very rare. There are some patterns that have a higher expectancy but ... Read more
