Candlestick Patterns
Discover candlestick pattern probabilities and win/lose percentages to supercharge your trading game.
Candlestick Patterns Key Features
360+ Candlestick Patterns
Get the win and loss probabilities for over 360+ candlestick patterns.
Multiple Timeframes
Identify pattern probabilities for the daily, weekly, and monthly timeframes.
Pattern Types & Signals
Reversal, continuation, and indecision pattern types. Confirmed and fakey signals.
Historical Probabilities
Get the pattern probabilities by year for a stock using its entire price history data.
Overall Probabilities
Get the overall win / loss probabilities per candlestick pattern using all stocks.
Multi-Line Patterns
1-line, 2-line, 3-line, 4-line, and 5-line candlestick patterns.
Candlestick Patterns Key Takeaways
Probabilities for 360+ candlestick patterns.
Patterns on daily, weekly, and monthly timeframes.
Fakey (false signal) and confirmed patterns.
Reversal, continuation, and indecision patterns.
1-line, 2-line, etc., and 5-line candlestick patterns.
Pattern probabilities for thousands of stocks.
What is Candlestick Pattern Probability?
Candlestick pattern probability refers to the odds of winning or losing a trade based on using a candlestick pattern as an entry or exit rule to opening or exiting a position.
Stock traders use candlestick patterns to enter and exit trades. If a trader knows the probability of a candlestick pattern correctly predicting the price direction of a stock, they can optimally size their positions relative to the risk and probability of winning and losing.
Pattern probabilities help traders be pragmatic and trade with high probability. If a pattern you trade has a low probability of winning per a stock, then it's likely not a good trade.
Master Lookup Pattern Probabilities
We created a master lookup table for candlestick pattern probabilities to quickly estimate the probability of 350+ candlestick patterns.
Our master lookup table is powered by an aggregation of 9,500+ stocks and their collective 30+ years of historical price data that we use to calculate the pattern probabilities.
Processing millions of data points for multiple timeframes and estimating probabilities for hundreds of patterns and multiple risk-to-reward ratios requires significant processing time, which is why we made the master lookup table: to simplify estimating generic probabilities per candlestick pattern.
Single Stock Lookup Patterns
Analyze the candlestick pattern probabilities per stock, aggregated by a per year basis. By aggregating the pattern probabilities by year for each candlestick pattern, traders gets a more accurate probability estimation for patterns in the current year.
When a trader finds a stock, they need a probability estimate of winning or losing based on the entry point, the price action, or pattern, for the current year and the stock. If a trader knows the probability, they can optimally size their bets relative to the risk-to-reward, and the probability of winning and losing a given trade.
Pattern Probability FAQ
Q.What is pattern probability?
A.Pattern probability is a Stocksift Elite product that lets users view and search the probability of winning and losing a trade that is placed based on a candlestick pattern. We provide candlestick pattern probabilities for thousands of stocks using the current price data and the entire price history of each stock.
Q.What are the benefits of pattern probability?
A.By knowing the probability of winning and losing a trade, a trader is able to optimally size their position based on their perceived and estimated probability of winning and losing the trade. Optimally sizing your position relative to your risk and reward, and the probability of winning and losing, is how to lower your risk while maximizing potential reward.
Q.Are there candlestick pattern probabilities for multiple timeframes?
A.We identify candlestick patterns for the daily, weekly, and monthly timeframes and provide probabilities for the patterns in each timeframe.
Q.How many candlestick patterns are there?
A.We offer over 350+ candlestick patterns and provide probabilities for all of them.
Q.How many stocks have candlestick pattern data?
A.Any of the thousands of stocks, including ETFs, that we have price data for will be analyzed by our system to check for candlestick patterns and then calculate the probabilities per stock and pattern.
Q.How frequently are the pattern probabilities updated?
A.Candlestick pattern probabilities are updated daily, at the end-of-day (EOD), after the stock market closes for the day.
Q.What are fakey candlestick patterns?
A.Fakey candlestick patterns are false signals where the price goes in the opposite direction that the pattern predicts. A fakey signal is used by traders to take a position in the opposite direction that pattern predicts. Candlestick patterns typically are used to predict the direction of the price, but when the pattern fails to predict the price direction, and the direction goes in the opposite direction that it typically predicts, we then say it is a false signal or fakey pattern.
Q.What are confirmed candlestick patterns?
A.Confirmed candlestick patterns are signals where the underlying candlestick pattern correctly predicted the price direction. Traders often wait for candlestick patterns to be confirmed by price action before taking a trade, so that they mitigate the risk of whip-saws and false signals.
Q.What are reversal candlestick patterns?
A.Reversal candlestick patterns are patterns that predict the price direction will go in the opposite direction of the current trend. For example, if the current trend is a downtrend, and you recognize a reversal pattern, then that pattern suggests the price will go up.
Q.What are continuation candlestick patterns?
A.Continuation candlestick patterns are patterns that predict the direction of the price trend will continue. For example, if the price is in an uptrend and you see a continuation pattern, then that patterns suggests the uptrend will continue.
Q.What are indecision candlestick patterns?
A.Indecision candlestick patterns are patterns that are undecided on the price direction. In other words, they are indecisive, since they're neither bullish or bearish.
Q.What are winning and losing patterns?
A.All candlestick patterns, except for indecision patterns, are used to predict the direction of the price. For example, a bullish candlestick pattern predicts the price will move upwards, and vice versa. So a winning pattern is when a pattern correctly predicts the price direction, which implies that if a trader traded that pattern, then they would've won that trade. Losing patterns are when a pattern fails to correctly predict the price direction of a stock.