Decoding Alpha: Where Data Science Meets Wall Street.
The bearish marubozu is a one-bar bearish continuation Japanese candlestick pattern that historically leads to a quick bullish bounce. Yes, that’s not a typo–the data shows us that this popular bearish candle often leads to bullish action. But before you …
The bearish short line is a frequently occurring one-bar indecision Japanese candlestick pattern that history shows us leads to a bullish move. By using data-based technical analysis, there is a way to turn this tiny candlestick pattern into a profitable …
The bearish spinning top is a one-bar Japanese candlestick pattern that traditional technical analysts believe represents indecision. But these traders are wrong according to multiple-decade backtests. You can turn this indecision into clarity by using history as your guide. Interested? …
The bearish three-line strike is a rare four-bar bearish continuation Japanese candlestick pattern that suggests medium-term volatility, according to a multiple decades-long backtest. What if I told you that the crowd is wrong and you should do the opposite of …
The bearish tri-star is a rare three-bar bearish reversal Japanese candlestick pattern that is best traded as indented, according to our extensive testing. And while this is one of the few patterns that work as intended, you can still lose …
The bullish abandoned baby is an extremely rare three-candle bearish reversal Japanese candlestick pattern that suggests a future bullish move. This pattern is rarer than its bearish counterpart, and it’s difficult to determine the best trading strategy due to the …
The bullish belt hold is a frequently-occurring one-bar bullish-reversal Japanese candlestick pattern that leads to bearish price action, according to the data. Traditional candlestick technical analysts lose money in most markets with this pattern. Not so hot, right? But what …
The bullish breakaway is an extremely rare five-bar Japanese candlestick pattern that suggests future bullish price action, according to extensive historical backtesting. The pattern occurs too infrequently in all markets on the daily charts to produce statistically significant results. The …
The bullish closing marubozu, also known as the white closing marubozu, is a one-bar bullish continuation Japanese candlestick pattern that historically leads to future bullish price action, according to decades-long backtesting. If you’re trading this bullish candle using outdated technical …
The bullish counterattack, also known as the bullish counterattack lines, is a two-bar bearish reversal Japanese candlestick pattern that suggests bearish action is ahead according to historical backtests. This pattern loses in a big way when traded traditionally. But what …