Takuri Line Candle Pattern
Finally, a single candle line that works! In theory, the Takuri line candle should act as a bullish reversal and it does, 66% of the time, placing its rank at 18 out of 103 candle patterns, where 1 is best. Its frequency rank is 28, so you should be able to find it often in a historical price series. However, the overall performance ranks 47, which is about mid way down the performance list. Thus, even though price may reverse the downward price trend often, price does not trend far after that.
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My book, Encyclopedia of Candlestick Charts, pictured on the left, takes an in-depth look at candlesticks, including performance statistics.
Takuri Line Candlestick: Summary
Takuri Line Candlestick: Important Results
Theoretical performance: Bullish reversal Tested performance: Bullish reversal 66% of the time Frequency rank: 28 Overall performance rank: 47 Best percentage meeting price target: 82% (bull market, up breakout) Best average move in 10 days: -4.45% (bear market, down breakout) Best 10-day performance rank: 39 (bull market, down breakout) All ranks are out of 103 candlestick patterns with the top performer ranking 1. “Best” means the highest rated of the four combinations of bull/bear market, up/down breakouts. The above numbers are based on hundreds of perfect trades. See the glossary for definitions. |  Takuri Line |
As I mentioned in the introduction to the Takuri line, it works as a bullish reversal of the prevailing downward price trend 66% of the time. That means two of every three trades will show a reversal. Unfortunately, the new trend does not last long, if the overall performance rank of 47 has meaning.
Takuri Line Candlestick: Discussion
| Characteristic | Discussion |
| Number of candle lines | One. |
| Price trend leading to the pattern | Downward. |
| Configuration | A small bodied candle with a lower shadow at least three times the height of the body and little or no upper shadow. |
Takuri Line Candlestick: Identification Guidelines
- Look for the Takuri line as part of a downward retracement in an up trend — page 724.
- To confirm a Takuri line, wait for price to close higher the next day — pages 724-725.
- Takuri lines within a third of the yearly high tend to act as reversals most often — page 727.
Takuri Line Candlestick: Three Trading Tidbits
The chart shows two examples of Takuri lines on the daily scale. Candle A appears in a downward price trend with a long lower shadow. This Takuri line has a small upper shadow, but it is small enough that it poses no bother. Price breaks out upward the next day when it closes above the top of the candlestick. Candlestick B is another Takuri line. It appears after a downward trend has finished and it also has a long lower shadow, but a nubbin of an upper shadow. The breakout from B is also upward and that happens three days later with a tall white candle, called an opening white marubozu.
