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Strategies & Market Trends : Candlestick Patterns and how they can help -- Ignore unavailable to you. Want to Upgrade?

To: Murray Grummitt who wrote (7)	3/21/2002 10:10:35 AM
From: fut_trade	Read Replies (1) \| Respond to of 17

I can compute the trade stats for your pattern for the SP futures. I need to hard code in some numbers, but it shouldn't take too long. One problem with cash indices is that the open is not the true open. So testing patterns on cash indices isn't reliable. I might be able to download some other futures data and try testing on those.

To: Murray Grummitt who wrote (7)	3/21/2002 11:38:59 AM
From: fut_trade	Read Replies (1) \| Respond to of 17

I ran a scan from 1993 to present on the SP futures data. for (day 1) I used "close higher than open by 0.5%" to get a few extra hits. Even with that change, only 8 days out of 2322 matched the full pattern. There were 6 wins and 2 losses. Almost all the gains came from two trades: 19990120 and 19990513. On the basis of 1 S&P 500 point = $50 (emini) the average win was $677 and the average loss was $156. The only problem with this pattern is that is comes up less than once per year - and if you missed those 2 trading days I listed above, you made essentially nothing.