Strongest and Weakest Candlestick Patterns -- with David Moadel
welcome to looking at the markets with David Modell I'm always on the lookout
for interesting websites just to get other opinions other people's opinions
and this one I found is incredible charts calm I want to give them credit
and I'm going to put a link in the description below this video so you can
click on this webpage that I'm on right now alright and it is going to be about
candlestick chart patterns what are the strongest ones what are the weakest ones
I was really curious to see what they say I cannot vouch or verify
I cannot Bouch for anything on this website it does not belong to me I
cannot verify that any of this is reliable or true you have to make your
own decisions and I just want to see if you agree or disagree with these all
right so they actually ranked from strongest to weakest many of the most
popular or commonly known candlestick chart patterns and by the way before we
get into this just what I just want to let you know if you need help with these
things trading investing chart patterns things like that you can contact me by
email at David Modell at gmail.com also in the description below this video I'm
going to put some free financial reports that you can download and you can
download one or several or as many as you want so that's all in the
description below this video ok so let's see how they define strong and weak
according to incredible charts calm if it's a strong candlestick pattern that
means it's at least three times as likely to resolve in the indicated
direction and then less strong would be reliable according to them reliable
patterns are at least two times as likely to resolve in the indicated
direction and then the least reliable ones would be what they call weak
patterns only which are only one and a half times as likely to resolve in the
indicated direction meaning that two out of five of those patterns are likely to
fail so I would imagine we would probably want to avoid the weak ones and
stick with the strong ones or reliable ones all right so my guess before
looking at this was that as far as the strongest ones at least for me in my
trading would probably be bullish and bearish
engulfing patterns I like those I like dojis as possible reversal
signals especially if there's confirmation from other indicators I
like hammers that kind of thing but you know let's see let's see what they say
all right drum roll please here we go according to incredible charts calm the
most or strongest one is three white soldiers for reversal pattern the
bullish one and the bearish one is pretty much the same thing with the
opposite direction three black crows I never would have guessed that okay three
white soldiers let's take a closer look at that one who will pull it down a
little bit that's what it looks like and basically it's not that complicated
maybe I'll make a video on this one in the future but pretty much whenever you
have if it's three white soldiers you're going to get a green candle or white one
in this case and then if the next one opens within the body of the last one
and then closes above the the last one and then that happens again opens within
the body of the previous one and then closes above the previous one so you get
three in a row that is supposed to be the strongest one according to this
website incredible charts calm and then the strongest reversal pattern would be
the and that would happen if it's a reversal pattern it's going to happen at
the bottom of a drop of a downtrend a previous downtrend okay and then the
three black crows would be the opposite it would be at the end of an uptrend
previous uptrend then it would go down okay you know I don't know I don't see
it that often so that seems to be a fairly infrequent or rare one but I
guess if you do see it that could be a pretty strong reversal pattern well
there you go thus that's at the top of their list
also strong deliberation and identical three crows pretty similar
yeah they don't look that they're they're not that different
interesting okay and what else would they consider strong the morning star
and evening star okay okay I might have guessed that and then those are reverse
reversal patterns I'm not gonna explain every single one because there are a lot
of them on this page you can look these up individually and I have videos on
some of these so if you go on YouTube and type these in to the search box you
might actually find some of my videos there so and then another strong one
according to the website is the concealing baby swallow not the most
popularly known one I would say one of the rare ones and it's you know four in
a row here so it's not gonna happen that often as opposed to let's say a doji
which is really just a one candle thing you know but there you go
all right so that's the strongest ones and then oh we have one more strong one
here three lines strike again not not the most common one you're ever going to
see and that's a reversal pattern and you got four you know it's a four candle
pattern here all right so those are the strongest ones according to the website
and the reliable ones which are a little bit less strong than the strong three
lines strike there it is it's interesting that the the bearish version
at the top of an uptrend is strong but then the bullish one at the bottom of a
downtrend is is only reliable and not strong interesting okay also reliable
according to this website there it is evening the evening doji nice okay and
in the morning doji fair enough I like that I like those rising three methods
falling three methods look at that it's a five candle pattern you're not gonna
see it that often but you know hey rare patterns can be powerful patterns also
reliable here according to the website three outside up three outside down some
kind of obscure once I would say relatively speaking there we go
I know this one you might know it too engulfing I might make a video about
that one don't be surprised right and that's kind of those are
pretty you know more frequent than I think anything else we've seen so far
all right belt hold okay interesting interesting reliable
abandoned baby that's a well-known one reliable separating lines
alright reliable continuation patterns doji star there we go
good old doji's but these are doji stars so these are actually continuation
patterns an advanced block alright not the most well-known ones so now we're
getting into the week one so those R'lyeh we're reliable now supposedly
these are weak ones that you might not want to rely on too much I might not
want to use these so much according to the website or at least that's what they
might be suggesting suggesting advanced block three insight up three inside down
considered weak here hanging man and inverted hammer really okay considered
weak could they be weak I mean this is only a
one candle pattern the you know the hanging man so it's not very rare it's
pretty common happens quite a bit and so maybe because it happens so much it's
not gonna be as reliable okay you may agree or disagree inverted hammer very
common piercing line dark cloud cover that's a well-known one considered weak
here interesting okay stick sandwich considered a weak breakaway all right
matching high matching low considered weak side by sign side by side white
lines considered weak a lot of weak ones here
downside gap three methods and upside gap three net methods a lot of kind of
obscure ones here unique three rivers okay considered weak up side gap two
crows the hammer and the shooting star hmm I like those ones considered weak
here according to this website alright but again it's only one candle so it
happens a lot and so when you get a lot of instances
yeah you know sometimes it's just not gonna reverse alright as expected so
maybe there's a reason statistically they might think they're weak I kind of
like these so I may tend to disagree with those but hey if they happen to
have statistics and back testing to back it up Who am I to argue with that the
ones that I really like so again the strongest ones at the top
of the page three white soldiers three three black crows fair enough
I like the morning star in the evening star I tend to agree with with them on
that one doji stars I tend to agree with that one for sure and engulfing
definitely I like those not the strongest according to this but reliable
all right fair enough what do I disagree with well I just said it before go back
to the bottom here the let's find it here there it is the hammer in the
shooting star I like them but hey they don't for whatever reason what do you
think I'd be curious to get your ideas in the comments then they're below this
video you know tell me do you agree or disagree with incredible charts calm but
I want to give them credit for putting the information out there feel free to
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again soon
you