Rickshaw Man Candle Pattern
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Rickshaw Man Candlestick: Important Results
Theoretical performance: Indecision Tested performance: Continuation 51% of the time Frequency rank: 55 Overall performance rank: 35 Best percentage meeting price target: 71% (bull market, up breakout) Best average move in 10 days: 4.22% (bear market, up breakout) Best 10-day performance rank: 43 (bear market, up 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. |  Rickshaw Man |
Candle theory says that the behavior of a rickshaw man amounts to indecision. I don’t know about that (that’s a joke). My tests show that it acts as a continuation pattern 51% of the time, which is about random. Thus, reality agrees with theory.
Rickshaw Man Candlestick: Discussion
The rickshaw man appears on the chart as a tall candle with a doji body. The difference between a long legged doji and a rickshaw man is that a rickshaw man must have the body near the middle of the candle. A rickshaw man is a long legged doji but a long legged doji is not necessarily a rickshaw man. If you understand that, then ask your significant other for a treat, and tell them Tom sent you.
Rickshaw Man Candlestick: Three Trading Tidbits
- Rickshaw man candles that appear within a third of the yearly low usually perform best — page 628.
- Use the price trend leading to the rickshaw man to help predict the breakout direction — page 629-630.
- Volume gives performance clues — page 629.
Rickshaw Man Candlestick: Example
Although it my look like I circled two candles in the chart, I am referencing the doji looking candle in the red circle. That candle line is a rickshaw man. It has unusually tall upper and lower shadows, a body in which the opening and closing prices are about the same, and the body is near the middle of the candlestick.
This rickshaw man appears in a downward price trend. Notice that the breakout is also downward. A downward breakout occurs when price closes below the low in the rickshaw man.
This candlestick speaks of indecision, as if neither the bulls nor the bears know which way price will breakout. The bulls were in control for a time and pushed price upward, giving the rickshaw man a tall upper shadow. A long downward shadow appeared when bearish selling pressure forced price lower, but by day’s end, price closed about where it opened, having given up no ground in the process. The rickshaw man candle may look pretty on the chart but it has no investment implications that I have been able to find.
