Three Black Crows rules not respected

Bard · 2019-03-20T10:59:23+00:00

I have been cleaning up and modifying a very useful Candlestick Patterns post by Violet here on this forum that I will post when I am satisfied that all the 8 patterns I want to include meet Thomas Bulkowksi’s analysis. Violet’s post is here: https://www.prorealcode.com/prorealtime-market-screeners/trend-reversal-continuation-patterns/ Often when you believe a pattern should be indicated on the chart it is not. This can be due to some tight restrictions on the description/conditions of the pattern, perhaps concerning the range / ratios of a candlesticks body relative to other candles, but here in the case of the “Three Black Crows” I seem to be finding many examples on daily charts that are not being indicated? The code I have is: // Bulkowski accuracy rate: 78% in a Bull Mkt and 79% in a Bear Mkt. Frequency: Very common. c1 = close[2] < open[2] c2 = close[1] < open[1] and close[1] < low[2] c3 = close[0] < open[0] and close[0] < low[1] // Closing prices are less than 1/3 from lows c4 = abs(close[2] - low[2]) < range[2] / 3 c5 = abs(close[1] - low[1]) < range[1] / 3 c6 = abs(close[0] - low[0]) < range[0] / 3 Any ideas? Am I correct in thinking many of these white falling candles should qualify as Three Black Crows on the Daily £/$ in Aug 2008? Screens from Thomas Bulkowski – Encyclopaedia of Candlestick Charts.

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03/20/2019 at 11:59 AM #94144 quote
Bard
Participant

Master
I have been cleaning up and modifying a very useful Candlestick Patterns post by Violet here on this forum that I will post when I am satisfied that all the 8 patterns I want to include meet Thomas Bulkowksi’s analysis. Violet’s post is here: https://www.prorealcode.com/prorealtime-market-screeners/trend-reversal-continuation-patterns/

Often when you believe a pattern should be indicated on the chart it is not. This can be due to some tight restrictions on the description/conditions of the pattern, perhaps concerning the range / ratios of a candlesticks body relative to other candles, but here in the case of the “Three Black Crows” I seem to be finding many examples on daily charts that are not being indicated?

The code I have is:
```
// Bulkowski accuracy rate: 78% in a Bull Mkt and 79% in a Bear Mkt. Frequency: Very common.

c1 = close[2] < open[2]
c2 = close[1] < open[1] and close[1] < low[2]
c3 = close[0] < open[0] and close[0] < low[1]
// Closing prices are less than 1/3 from lows
c4 = abs(close[2] - low[2]) < range[2] / 3
c5 = abs(close[1] - low[1]) < range[1] / 3
c6 = abs(close[0] - low[0]) < range[0] / 3
```
Any ideas? Am I correct in thinking many of these white falling candles should qualify as Three Black Crows on the Daily £/$ in Aug 2008?
Screens from Thomas Bulkowski – Encyclopaedia of Candlestick Charts.

Daily-£-Black-Crows-Fail.png
03/20/2019 at 12:04 PM #94147 quote

Bard
Participant

Master

Three Black Crows – Charles Bulkowski:
(Excuse highlighting of book).

1-2.png 2-1.png 3.png 4.png

03/20/2019 at 1:54 PM #94162 quote
Nicolas
Keymaster

Legend
Bard wrote:

Am I correct in thinking many of these white falling candles should qualify as Three Black Crows on the Daily £/$ in Aug 2008?

I don’t know, did you test each of the condition?

I get many patterns, but not on that dates:
```
// 3 - Three Black Crows *********************************
// Bulkowski accuracy rate 78%, frequency: very common
c1 = close[2] < open[2]
c2 = close[1] < open[1] and close[1] < low[2]
c3 = close[0] < open[0] and close[0] < low[1]
// Closing prices are less than 1/3 from lows
c4 = abs(close[2] -low[2]) < range[2] / 3
c5 = abs(close[1] -low[1]) < range[1] / 3
c6 = abs(close[0] -low[0]) < range[0] / 3
 
return c1 and c2 and c3 and c4 and c5 and c6
```
Bard thanked this post

3-black-crows.png
03/21/2019 at 4:27 PM #94328 quote

Bard
Participant

Master

Thanks, running the code separately in it’s own indicator (instead of being combined with the 7 other Bulkowski patterns), made me realise that I had a trend filter (SAR) switched on in the Bulkowski indicator.

Oddly with the trend filter switched off and the exact same code as above I did gets lots of Three Black Crow patterns during that chaotic period in Aug 2008: Pls see screenshot, not sure why you didn’t, once I get the Morning Star sorted I’ll post the 8 Bulkowski (upgraded) patterns indicator.

Cheers Nicolas,

Three-Black-Crows.png
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