The only true out of sample data – is tomorrow’s data.

While there are many steps that we can take to improve the likelihood that any trading system which we design will hold up when executed on a live market…the harsh reality is that back-test results are almost always going to be better than real results. And irrespective of whether you developed and tested your strategies using…

Click to continue →

Amibroker AFL for the Shooting Star Candlestick Pattern

The shooting star candlestick  is a 1 day reversal pattern that is often used to alert investors of impending market weakness. Shooting Star Pattern Rules Price has been in an up-trend. The upper shadow must be at least 2 times larger than the real body. The lower shadow must be less than 10% of the entire day range.…

Click to continue →

Amibroker AFL for the Bullish Kicker Candlestick Pattern

The bullish kicker candlestick pattern is a two-day reversal pattern that is often used to alert investors of impending market strength. Bullish Kicker Pattern Rules Yesterday closed lower than it opened. Today opened equal to or higher than yesterdays open. Today closed higher than it opened. Today’s low was higher than yesterday’s high. Bullish Kicker Pattern Amibroker Formula If you…

Click to continue →

Amibroker AFL for the Morning Star Pattern

The morning star candlestick pattern is a three day reversal pattern that is often used to alert investors of impending market strength. Morning Star Pattern Rules Price has been in a down-trend. The first day of the pattern is a large down day (a black or red candle). The second day of the pattern gaps down from…

Click to continue →

Amibroker AFL for the Dark Cloud Cover Pattern

The dark cloud cover candlestick pattern is a 2 day reversal pattern that is often used to alert investors of impending market weakness. Dark Cloud Cover Pattern Rules Price has been in an up-trend. The first day of the pattern is a strong and large up day. The second day of the pattern opens higher than the first day. The…

Click to continue →

Amibroker AFL for the Bearish Harami Pattern

The bearish harami candlestick pattern is a 2 day reversal pattern that is often used to alert investors of impending market weakness. Bearish Harami Pattern Rules The bearish harami candlestick pattern is a 2 day pattern that I give the following rules: The price must be in an up-trend. The first day is a large up day. The second day opens lower…

Click to continue →

Amibroker AFL for the Hanging Man Pattern

The hanging man candlestick pattern is a 1 day reversal pattern that is often used to alert investors of impending market weakness. Hanging Man Pattern Rules Price must be in an up-trend. The hanging man day must have a lower shadow at least 2 times longer than the real body. The upper shadow must be 10% less than the entire…

Click to continue →

Amibroker AFL for the Evening Star Pattern

The evening star candlestick pattern is a 3 day reversal pattern that is often used to alert investors of impending market weakness. Evening Star Pattern Rules Price has been in an up-trend. The first day of the pattern is a large up day. The second day of the pattern gaps up from the first day and creates a candle that…

Click to continue →

Amibroker AFL for the Bearish Engulfing Pattern

The Bearish Engulfing candlestick pattern is a 2 day reversal pattern that is often used to alert investors of impending market weakness. Bearish Engulfing Pattern Rules Price must be in an up-trend. The first day must be an up day. The second day must open higher than the first day’s close. The second day must close lower…

Click to continue →

Amibroker AFL for the Piercing candlestick Pattern

The piercing  candlestick pattern is a 2 day reversal pattern that is often used to alert investors of impending market strength. Piercing Candlestick Pattern Rules Price has been in a down-trend. The first day of the pattern is a larger than average down-day. The second day of the pattern opens lower than the first day…

Click to continue →