Which candlestick pattern is the best (lets test it)

[NIKO TORI]

Hello everyone, i have one goal and that is to find the best candlestick pattern to trade.
But i am not interested in just some random listing of patterns, like: "engulf, morning star, hammer,...", i want FACTS, i want to see serious analysis, do you have it? Can i repeat it? Do you know for some software that i can do such tests?

So tell me what do you got, why and which pattern is the best, in what situation?

To give you some idea what i mean by serious tests, please take a look at my numbers and even whole process behind it (video). I am serious guys, lets find this holy grail once and for all.

MARUBOZU pattern (naked testing, without any filter like trends and snr)

You can see i got four different tables. With yellow you can see most important info, that is how much would you get on 100% investment, profit is everything above 100.

1. AUD/USD, 1h time frame, 10 year testing period, bullish body, sell at close price, (stop loss 1 = value of body)
2. USD/JPY, 1h time frame, 10 year testing period, bearish body, buy at close price, (stop loss 1 = value of body)
3. USD/JPY, 5min time frame, 1 year testing period, bullish body, sell at close price, (stop loss 1= value of body)
4. USD/JPY, 5min time frame, 1 year testing period, bearish body, buy at close price, (stop loss 1= value of body)

As you see, profitability is quite low, so do you have better solution, proof of better results? Please give me ideas.

[Sergey Golubev]

Forum on trading, automated trading systems and testing trading strategies

Something Interesting

Sergey Golubev, 2020.06.26 07:06

Hammer and Hanging Man Candlestick EA - expert for MetaTrader 5

Trading in two patterns: 'Hammer' (Hammer) and 'Hanging Man' (Hanged Man). Stop loss is floating and depends on the pattern found.

===========

Video with mini-articles

• Candlesticks patterns. Hammer, part #1: post #143 
• Candlesticks patterns. Inverted Hammer (part #2): post #144 
• Candlesticks patterns. Hanging Man: post #145  
• All the patterns in one image: post #5

[NIKO TORI]

Thank you for your reply. I like those explanations. It is clearly that for better results of testing i would need to include trends as well. I wonder how much would profitability rise from these numbers of naked testing:

interesting is that for 5min time frame results got so worse. You might wonder why is there SELL instead of BUY. Well for buy it is even worse result. Man i really need trend building option.