• Sun, Mar 20, 2016 - 07:45am



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I'm in the middle of doing a bunch of statistical analysis on candlesticks – I'm trying to answer the question "given this candle print in this context, what are the chances of a reversal based on today's market context."

My code tells me the crude oil candle on Friday was a spinning top, forming the second part of a "bearish harami", not a shooting star.  Definition of shooting star says the length of the upper shadow must be >= 2x the body.  Shooting stars can be unpleasant, bearish harami not so much.  I think the idea is that failed rally needs to be a bit more exciting for it to be a stronger candidate for reversal.

Bulkowski (one site I'm using to help me in my work) suggests that a bearish harami is a continuation pattern 53% of the time.

Here is the def of "shooting star":

Prior to my recent work, I have been a bit sloppy in identifying the various candle patterns!  My code is now keeping me in line…