Encyclopedia Of Candlestick Charts Thomas N. Bu... -

Most traders are taught that certain patterns are "reversals." Bulkowski found that many of these actually perform better as continuations—or perform so randomly they are no better than a coin flip.

Waiting for a close above or below the pattern's boundaries (confirmation) can slash failure rates. For instance, waiting for confirmation on a double top can cut its failure rate from 65% down to just 17%. 4. Why You Need the Book (and the Site)

His data shows that while volume during the pattern's formation is often a poor predictor, heavy volume on the breakout day significantly boosts performance in 91% of candle types. Encyclopedia of Candlestick Charts Thomas N. Bu...

One of Bulkowski's most practical contributions is his emphasis on .

Bulkowski’s research identified specific "elite" formations that offer a genuine statistical edge. According to his long-term testing, these are some of the most reliable performers: Theoretical Meaning Bulkowski's Found Accuracy Bearish Continuation 84% (as Bullish Reversal) Three Black Crows Bearish Reversal 78% Evening Star Bearish Reversal 72% Abandoned Baby (Bullish) Bullish Reversal 70% 3. The Power of the "Breakout" Most traders are taught that certain patterns are "reversals

Here is why this 900-page "trader’s bible" remains essential for anyone moving from gambling to systematic trading. 1. The Death of Conventional Wisdom

There are 412 different combinations of 103 candles that acted as reversals or continuations in bull and bear markets. Of the 412, Encyclopedia of Candlestick Charts Thomas N. Bu...

He discovered that only about 10% of candle patterns work at least 60% of the time and occur frequently enough to be useful.