Price action and candlesticks are a powerful trading concept and even research has confirmed that some candlestick patterns have a high predictive value and can produce positive returns. Especially interesting is a research paper by Gaginalp and Laurent in which they showed that the candlestick patterns: Three White Soldiers, Three Black Crows and Three Inside Up have a significant short-term prediction value for the course of price. 1 Their research showed that those patterns are predictive about 75% of the time for most of their data sets. Why do candlestick patterns work? Traders often mistakenly believe that the ... (full story)