Side-by-Side White Lines Bullish

Today we test the "Side-by-Side White Lines Bullish" candlestick pattern. This is part of a series of tests we are conducting to measure the efficacy of candlestick patterns.

This is the description as per the Lit Wick website

Side-by-Side White Lines Bullish - How to Identify it:

• The first day is a white day
• The second day is a white day that gaps up
• The third day is a white day of about the same body length and close as the second day

As always if the term “Long” is used in the description, we will define “long” as a range that is greater than the 20 day moving average of range. When we test the pattern in a uptrend, we define uptrend as a close greater than the 50 day moving average and yesterdays 50 day moving average is greater than the prior days 50 day moving average.

We tested this pattern on every one of the S&P 500 stocks since 1990 and compared the performance results to the average 5 day move in all the S&P 500 stocks. The entry was at the open on the day after the "Side-by-Side White Lines Bullish" pattern setup and the exit was at the open 5 trading days after entry.


Below are the results of the "Side-by-Side White Lines Bullish" candlestick pattern. As a comparison the average 5 day holding period of all the S&P 500 stocks and all the other candlestick patterns that we have tested to date.