TT - GC: Randomness and Candlestick Patterns, 02/13/14

TastyTrade - Game Changers

Here are samples of the price distribution generated from 2 bullish and 2 bearish candlestick patterns:

For bullish candlestick patterns you would want the distributions to be biased to the right, which they are not.

For bearish candlestick patterns you would want the distributions to be biased to the left, which they are not.

Dinger has always stressed waiting for confirmation on candlestick patterns. It's not clear from these results whether receiving confirmation would improve the outcome (bias).