Japanese candlesticks formations are one of the strongest criteria for traders to open positions. Here are the five formations that have more than 70% probability of execution in the latest market conditions /Probability has been tested on the D1 time frame using software on historical data and these formations have given the highest rate of performance/.
1.Three line strike - it is formed after a downward movement and a series of bearish bars, as the last three bear bars being engulfed by a bullish one. The bullish bar should close above the opening price of the first bearish bar. The calculations show that the formation is successful in 82% of the cases.
2. Two black gapping - The formation consists of 2 bear candles, which have been formed consecutively after gap and have two lower bottoms. The probability of the formation is 76%.
3. Three black crows - a popular formation of three bearish bars with 74% success rate.
4. Evening star - a gap after a bullish bar followed by a small one and a gap in downward direction afterward. This one has 72% chance for success.
5. Abandoned baby - the opposite of Evening Star, with 71% probability.
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