Candlestick Pattern Analysis

Last update: --
Timeframe:
(1 day)
Gradient: 25-75%

Pattern Breadth - Analysis by Sector

Percentage of stocks showing candlestick patterns in the last 1 trading day, grouped by sector.

Bullish Bearish Indecision
Pattern Group Signal Growth Value Cyclicals Defensives
Discretionary Communication Technology Financials Financials Funds Industrials Real Estate Materials Energy Healthcare Staples Utilities

Note: Percentages represent the proportion of stocks in each sector that showed the respective pattern in the selected timeframe. A single stock can show multiple patterns.

Which sectors lean bullish next session

The Bull/Bear ratio does not run on a cycle. Every lag from 1 to 14 was tested on all twelve sectors and 8 of 168 autocorrelations clear two standard errors — exactly what chance alone produces, so there is no period to project forward. The waves on the chart above are the smoothing plus the noise.

What is there is mean reversion, and it is orderly: pooled over 708 sector-days, a reading in the lowest bucket today is followed by a bullish day 54 % of the time against a 45 % base rate, and the effect falls monotonically across all six buckets and decays with horizon. It holds in 10 of the 12 sectors taken separately. That is a lean, not a forecast — a lift of about 1.2×.

Groups are ranked by where today's reading sits in their own 60-day distribution, not by a shared cut: sectors rest at different levels, so a flat threshold would rank them on their baseline instead of on today.

History of Patterns

Historical Bull/Bear Ratio per sector over the last 60 trading days. Values above 50% indicate more bullish patterns, below 50% more bearish patterns.

25-75%
33%

Industries within a Sector

The same Bull/Bear Ratio one level down, for the industries of the selected sector. Line colour follows the industry's rank by total pattern count — green for the most active, red for the least. Pattern type and zoom follow the chart above.

Pattern and Future Performance

Per-sector Markov-state forecast based on the joint (oscillation period, Bull/Bear ratio level) bucket of the pattern curve today.

Sector Outlook

Win % = share of historical observations in the same state where the sector ETF reached the K·ATR threshold within the next 10 trading days. ATR is the 14-period True Range as a % of price at the historical observation date, so the threshold is regime-relative. Hover the state cell for sample size and ATR.

Data Sources

Stock & ETF Prices: Tiingo (daily OHLC) | Pattern Recognition: Candlestick pattern detection algorithm