The above the stomach candlestick pattern is a two-candle bullish reversal pattern: after a downtrend, a long black (bearish) candlestick is followed by a white (bullish) candlestick that opens and closes at or above the middle of the black candle's real body. The second candle "sits above the stomach" of the first one, hence the name.

This guide explains how to identify it on a candlestick chart, how to use it, how it compares with the bullish engulfing, the bullish harami and other candlestick patterns, and what happened after it in reality. We applied the same rule to full price history, which gave 80,330 occurrences on the daily timeframe alone across stocks, ETFs, indices, commodities, crypto and forex, and compared the outcome with random sessions on the same assets.

What is the above the stomach candlestick pattern?

The above the stomach is a bullish reversal signal made of two Japanese candlesticks. In the taught form, the first candlestick is long, continues the downtrend and ends near its low. Our bench is less strict: any black candle that is not a doji, after a downtrend, counts, so the rule taught here picks a subset of the cases we tested. The second candlestick opens much higher, at or above the midpoint of the first candle's body, and closes higher still. In one session, the market moves from selling to buying, and the opening price of the second candlestick shows it before any trading has taken place.

Its bearish mirror image, a white candle followed by a bearish candle that opens and closes at or below the middle of the white body after an uptrend, is called below the stomach.

Understanding the anatomy of the pattern

Each of the two candlesticks has a specific role.

Black candleafter a downtrend
Close above midpointof the black body
White bodyopens and closes at or above the midpoint

Median shape of 3,000 daily occurrences drawn at random from all markets, found by our test bench.

The first candle: bearish momentum

The first candlestick is black (red on charts that color down candles that way): its closing price is below its opening price. It forms after a decline and confirms that sellers still control the price. A large black body is the textbook case; our bench accepts any black candle except a doji and has not tested whether a larger one helps.

The second candle: price action above the midpoint

The second candlestick is white (green): its closing price is above its opening price. Its opening price is at or above the middle of the body of the first candle, and so is its closing price. A black candle closes at the bottom of its body, so a white candle that opens at or above the midpoint always opens above the previous close. That gap is the key feature of the above the stomach candlestick pattern.

The chart below is not drawn by hand. It is the median shape of the occurrences our bench detected, with the position we test: entry above the high of the two candles, stop loss below their lowest point, target at twice the risk.

Bullish setup on the median shape of 3,000 daily occurrences drawn at random from all markets, with entry, stop loss (SL) and 2:1 target (TP)

On the daily timeframe, the median pattern spans 3.83% of the price from top to bottom, or 1.28 times the average true range (ATR) of the asset: a larger move than an average session.

How to identify the above the stomach pattern on a chart

Check the following conditions in order. If one is missing, it is another candlestick pattern, or none.

What to look for

Two candles: a black candle, then a white candle.
The white candle opens at or above the midpoint of the black body.
The white candle closes at or above that same midpoint, and above its own open.
The upper and lower shadows do not matter for the definition, but a long upper shadow on the white candlestick shows that buyers could not hold the highs.

Context and trend requirements

The pattern must follow a downtrend. Our bench uses a simple test: the close before the setup is at least one average true range below the close 10 bars earlier, and in the lower half of the range of the 40 previous closes. Without a prior decline, two candles with this shape are just a bounce inside a range or an uptrend, not a reversal.

Where it forms: stocks, hourly crypto, rarely forex

The pattern needs a gap between the first candle's close and the white open. Stocks open each morning at a new price after overnight news, so gaps are common: on US stocks, we found one occurrence every 99 daily bars. Crypto and most forex pairs trade around the clock, so a candle usually opens at or very near the previous close. On the daily crypto timeframe we found only 21 occurrences in total, one every 28,666 bars. On hourly and 4-hour forex charts the pattern forms almost only at the weekly open, across the weekend gap, so we do not publish those rows. Hourly crypto is the exception: small gaps between one hourly close and the next open are frequent enough there for our bench to find 19,888 occurrences, one every 738 bars. The reliability section shows that they did not beat chance.

Why this pattern signals a trend reversal

The psychology behind the above the stomach pattern is a shift in sentiment between two sessions. In the first trading session, sellers dominate and the price ends near the lows. Overnight, the balance between buyers and sellers moves: news, earnings, a wider market move. The next trading session opens far above the previous close, in the middle of the prior body, and buyers hold the price there until the close. The classic reading is that selling pressure has been absorbed and that buying pressure can push the price higher in the future.

The gap matters for the story. Sellers who sold near the low of the bearish candle are suddenly at a loss, and some of them buy back. Buyers who waited are forced to pay a higher price. When the white candle holds above the midpoint until the close, sellers have not been able to push the price back down during the whole session, which is the change of force it is meant to show.

That reading is plausible, but it describes two candles. Whether it predicts the next sessions better than chance is a question for data. We answer it in the reliability section.

How to read candlestick bodies and shadows

If you are new to candlestick charts, here are the basics needed to read this pattern and the others on this page.

Anatomy of candlestick charts for beginners

Each candlestick shows four prices for one period: open, high, low and close. The real body is the box between the open and close. A white or green body means the close was above the open; a black or red body means the close was below it. The thin lines above and below the body are the shadows (or wicks): they show the highest and lowest prices of the period.

What bodies and shadows tell you

Large bodies show strong pressure from one side. Small bodies show indecision: buyers and sellers ended the period close to where they started, as in a doji or a spinning top. A long lower shadow shows that sellers pushed the price lower and buyers brought it back; a long upper shadow shows that buyers pushed prices to a high that sellers then rejected. A candle with both shadows long and a small body is considered a sign of hesitation. Reading candlesticks is mostly reading these two elements across one, two or three candles.

The importance of market sentiment in candlestick analysis

Candlestick analysis is a way to read market sentiment, not a forecasting tool on its own. Japanese rice traders used it centuries ago; Steve Nison introduced it to Western traders in Japanese Candlestick Charting Techniques (1991). Each pattern tells a story about buyers and sellers, and our bench checks whether the story is followed by the expected move more often than chance.

Blending candles for price action clarity

A useful technique in candlestick analysis is to blend a multi-candle pattern into a single candle: take the open of the first candle, the close of the last one, and the highest high and lowest low of the group. The blended candle shows the price action of the whole pattern at a glance.

Blending an above the stomach gives a candle that opens at the first candle's open and closes at the white close, with a lower shadow down to the black low. If the white close is below the first candle's open, the blended candle has a small black body and a long lower shadow: a shape close to a hammer or a hanging man, depending on the trend. If the white close is above the first candle's open, the blended candle is white; the pair is still not an engulfing pattern, because the white candle opened above the black close. In both cases, the lower shadow shows that sellers lost control and buyers took over during the period.

Analyzing shadow lengths and body ratios

Some also study body ratios. A white candle at least as large as the black one shows more buying than a small white one that barely holds the midpoint. A long upper shadow on the white candle tells a different story: buyers reached a high but could not hold it. These details do not change the definition, and we have not tested them separately.

Above the stomach vs. other reversal patterns

Several bullish two-candle reversal patterns start with the same black candle. What differs is where the white candle opens and ends.

Above the stomach vs. bullish engulfing

In a bullish engulfing pattern, the white body covers the whole body of the first candle: it opens at or below the first candle's close and closes above the first candle's open. In the above the stomach, the white candle opens higher, in the middle of the black body, and does not need to engulf it. The two definitions exclude each other: an engulfing opens at or below the black close, an above the stomach at or above the midpoint of the black body.

Above the stomach vs. piercing line

In a piercing line, the white candlestick opens below the black candle's lowest price, then ends above the middle of the body of the first candle. The opening is the opposite: weak in one case, strong in the other. Both close above the midpoint.

Above the stomach vs. bullish harami

Some readers mix up the two because of the name: harami means "pregnant" in Japanese, and the small second body sits inside the first one like a baby inside its mother's belly. In a bullish harami, the white body stays inside the black body, opening above the first candle's close and closing below the first candle's open. In the above the stomach pattern, the white candle only needs to open and close above the middle of the body of the first candle: it can close above the first candle's open, which a harami never does.

Comparison with tested bullish reversal patterns

These setups all look convincing on a chart, which is why we check them. Our bench tests each candlestick pattern the same way: the 2:1 setup above the pattern, compared with the same setup on random dates of the same assets. On all markets, daily:

Candlestick pattern	Occurrences (2:1 trades)	2:1 target hit	Same setup, random dates	Verdict
Above the stomach	80,330 (62,685)	37.3%	36.5%	No clear edge
Bullish engulfing	59,948 (48,554)	36.9%	35.7%	No clear edge
Piercing line	3,206 (2,320)	36.6%	35.6%	No clear edge
Bullish harami	27,061 (13,897)	36.8%	36.3%	No clear edge
Bullish doji star	6,448 (1,839)	37.7%	36.7%	No clear edge
Morning star	3,039 (2,366)	40.6%	34.2%	No clear edge
Hammer	15,363 (12,005)	35.4%	36.1%	No clear edge
Inverted hammer	11,620 (3,241)	30.7%	31.1%	No clear edge

None of these gaps passes our statistical test, which corrects for the thousands of tests we run. A hit rate is only half the story: the inverted hammer did not beat random dates on target hits, and it also lost money on average. Its setup averaged −0.08 R per position before costs, against −0.08 R on random dates.

Bearish mirrors: below the stomach and others

The bearish counterparts follow an uptrend: below the stomach, the dark cloud cover, the bearish engulfing, the evening star, the shooting star and the hanging man. We have not tested below the stomach yet. On the daily timeframe, the dark cloud cover reached its 2:1 target in 26.4% of cases against 27.7% on random dates, and the shooting star 28.8% against 29.7%: no measurable difference in average result per trade either. The hanging man did slightly better on hit rate, 25.0% against 24.1%, a difference that does not pass our test either, with a negative expectancy of −0.25 R per position.

Other candlestick patterns to know

This pattern is easier to place once you know the main candlestick patterns. Here is a short glossary, grouped into bullish reversals, bearish reversals and continuation or indecision candles, including the ones that look most like it.

Technical analysis books list dozens of candlestick patterns. A few, such as the doji, the spinning top, the hanging man, the engulfing pattern and the three white soldiers, already appear in Steve Nison's book. In classical candlestick analysis they are read as signs of pressure from buyers or sellers, with more weight near a support or resistance level. None of these candlestick patterns is a reason to buy on its own: the comparison table above shows how small their gaps over chance were on our bench.

Key bullish reversal patterns

Hammer: a small body at the top of the range and a long lower shadow, after a downtrend.
Inverted hammer: a small body at the bottom of the range and a long upper shadow, after a downtrend.
Piercing line: a white candle opening below the prior low and closing above the middle of the black body.
Bullish engulfing: a white candle that covers the whole previous bearish one.
Bullish harami: a small white body inside the previous long black body.
Morning star: a large black candle, a small star that gaps down, then a strong white candle. With a doji in the middle, it becomes a morning doji star.
Tweezer bottom: two bars with the same low, the second one bullish.
Three white soldiers: three white candles in a row, each closing at a new high, with little selling between them.

Key bearish reversal patterns

Hanging man: the same shape as the hammer, but after an uptrend, where it is considered a bearish warning.
Shooting star: the same shape as the inverted hammer, after an uptrend: buyers pushed to a new high, sellers took it back.
Dark cloud cover: the bearish mirror of the piercing line.
Bearish engulfing: a black candle that covers the whole previous white one.
Bearish harami: a small black body inside the previous long white body, a bearish sign of hesitation.
Evening star: the bearish mirror of the morning star. When the middle candle is a doji, it is called an evening doji star.
Tweezer top: two bars with the same high, the second one bearish.
Three black crows: three black candles in a row, each closing at a new low, the bearish mirror of the three white soldiers.

Continuation and indecision candles

Rising three methods and falling three methods: a large candle, a few small candles against the trend, then a new large candle in the direction of the trend. Each is a continuation pattern: the last candle resumes the trend.
Doji: open and close almost equal, a sign of indecision. The long-legged doji has long upper and lower shadows, the dragonfly doji a long lower shadow, and the gravestone doji a long upper shadow. A doji star is a doji that gaps away from a long candle.
Spinning top: a small body with shadows on both sides, another indecision candle. In classical candlestick analysis, a spinning top marks indecision, not a reversal by itself.
Marubozu: a large body with no shadows, a sign of strong pressure in one direction.

Step-by-step guide to trading the above the stomach pattern

This is the setup our bench simulates on every occurrence.

Wait for the second candlestick to close. Before the close, the white candlestick can still fall back below the midpoint. Some traders also wait for a confirmation candle, a third candle that ends higher; the buy stop above the high is a form of confirmation.
Place a buy stop just above the high of the two candles. In our tests, it was triggered 78.2% of the time on the daily timeframe; in 21.6% of cases, the price broke below the pattern first and the setup was canceled. The handful left expired: price touched neither level within the 20 bars the order stays active, or the data ended first.
Place the stop loss just below the lowest point of the two candles.
Set a target at twice the risk, or at the next resistance level.
Size the position on the distance from entry to stop.

Entry: Buy stop at the pattern high
Stop loss (SL): At the pattern low
Target (TP): Twice the risk (2:1)

The trade our bench tests, drawn on the typical shape. Median shape of 3,000 daily occurrences drawn at random from all markets.

A clean case from our bench: ETFsChosen on its shape alone, never on the outcome. ETF prices are adjusted for splits and dividends, so they can differ from the prices quoted at the time.

TextbookXLY June 20, 2016Daily chart0.5% against the expected direction after 10 bars2:1 trade: invalidated before entry

On the daily timeframe, positions that reached the target took a median of 10 trading sessions; those that were stopped took a median of 5 sessions.

Essential rules for confirmation

The pattern alone is a thin reason to buy. Here are three filters, and what our data says about the ones we measured.

Volume analysis as a confirmation tool

Higher volume on the white candlestick is read as stronger buying. We measured it in daily trading: patterns with trading volume above 1.5 times the 20-session average reached the 2:1 target in 36.9% of cases (expectancy +0.17 R), against 37.3% (+0.12 R) on normal volume. The difference is small, and this breakdown is descriptive, not corrected for the number of tests.

Using support and resistance levels

A pattern that forms on a support zone (a prior low, a round number, a moving average) gives a logical place for the stop loss, just below the support. The next resistance level above gives a natural target. We have not measured this filter.

Combining with technical indicators

The filter we did test is the 200-day moving average. Above it, daily setups reached the 2:1 target in 36.4% of cases (+0.10 R); below it, 38.0% (+0.15 R). The long-term trend barely moved the result. This split is descriptive, not in the tables and not corrected for the number of tests. Some traders also use the RSI or a bullish divergence; we have not tested those combinations.

Combining candlestick patterns with chart patterns

Some traders look for the pattern at the end of a larger chart pattern: the right shoulder of an inverse head and shoulders or the second low of a double bottom. The candlestick then gives the timing, and the chart pattern gives the context. We have not tested this combination either.

Risk management when trading this pattern

Setting your stop loss

Determining profit targets

Our bench sets the target at twice the risk. Of the daily positions that hit their stop, 23.7% had first been up 1 R. Taking part of the profit at 1 R, or moving the stop to the entry, is a way to limit losses of that kind.

The below the stomach pattern: the bearish version

Below the stomach is the bearish candlestick pattern that mirrors it, and a bearish reversal pattern in its own right. After an uptrend, a white candlestick is followed by a black candlestick that opens and closes at or below the middle of the white body. The opening price gaps down from the previous close, so sellers are in control from the first trade of the session. Traders who use it sell short below the low of the two candlesticks, with a stop above their high. We have not tested below the stomach on our bench yet, so we publish no figures for it, and the same caution applies: compare it with random dates before trusting it.

How to build a trading strategy around reversal signals

A candlestick pattern is a signal, not a trading strategy. A complete strategy around the above the stomach needs a few specific rules, written before the first trade:

which markets and which timeframe you trade, for example daily US stocks, where the pattern is frequent;
which trend filter you require, such as a price below its 50-day moving average for a pullback, or above its 200-day average;
where you enter, where you place the stop, and where you take profits;
how much of your account you commit to each position, a small, fixed share;
a record of every setup, taken or not, so you can compare your results with random entries.

Results differ from one market to another, as the table below shows, so a rule that looks good on one market should be tested again on the next.

Testing the efficacy of candlestick patterns

A success rate means little without its method. Our bench applies the same definition to every asset and every bar of price history, then compares what happened after the setup with what happened after random bars of the same assets. That comparison matters: in a rising stock market, almost any bullish setup looks good: 54.2% of random daily sessions on these assets were followed by a rise 10 sessions later. The question is whether the candlestick pattern does better than a random entry in the same market.

How reliable is the above the stomach pattern?

On the daily timeframe, it is not reliable on its own: after 10 trading sessions, the price was up as often as on random sessions of the same assets. The 2:1 setup did slightly better than chance, too little to count: the 10-bar move reads no clear edge, the 2:1 setup no clear edge. Here are the results.

54.1%vs 54.2% at random

Moved the expected way 10 bars later, compared with random bars.

Measured on 80,330 daily above the stomach occurrences across 1,787 assets. Random bars on the same assets are the honest baseline.

No clear edge

Above the stomach against random bars on the same assets, by market, on daily candles. Bars of almost the same length mean no edge.

Moved the expected way 10 bars laterAbove the stomachRandom bars

All markets
All markets, Above the stomach: 54.1%
All markets, Random bars: 54.2%
US stocks
US stocks, Above the stomach: 54.0%
US stocks, Random bars: 54.0%
Forex
Forex, Above the stomach: 63.8%
Forex, Random bars: 49.0%
ETFs
ETFs, Above the stomach: 55.9%
ETFs, Random bars: 56.2%
Indices
Indices, Above the stomach: 56.5%
Indices, Random bars: 56.9%
Commodities
Commodities, Above the stomach: 51.7%
Commodities, Random bars: 51.7%

2:1 trade hit its targetAbove the stomach tradeSame trade, random dates

All markets
All markets, Above the stomach trade: 37.3%
All markets, Same trade, random dates: 36.5%
US stocks
US stocks, Above the stomach trade: 37.1%
US stocks, Same trade, random dates: 36.3%
Forex
Forex, Above the stomach trade: 43.8%
Forex, Same trade, random dates: 31.7%
ETFs
ETFs, Above the stomach trade: 39.0%
ETFs, Same trade, random dates: 37.3%
Indices
Indices, Above the stomach trade: 39.2%
Indices, Same trade, random dates: 40.1%
Commodities
Commodities, Above the stomach trade: 38.2%
Commodities, Same trade, random dates: 37.6%

All statistics

Full results for the above the stomach candlestick pattern, market by market

Every occurrence our rule finds on full price history, compared with what the same assets did on random bars. A pattern only earns an edge if it beats random entries after correcting for the thousands of tests we run.

Our verdict

Not a reliable signal on its own here. Use it as context, not as a trigger.

10-bar move No clear edge2:1 trade No clear edge

Above the stomach: 80,330 occurrences tested

Bullish pattern · All markets · Daily · 1,787 assets · 1970-03 to 2026-10

Moved the expected way after 10 bars

54.1%

vs 54.2% on random bars

Excess return vs its market, 10 bars

−0.03%

95% interval −0.13% to +0.06%

2:1 trade hit the target

37.3%

vs 36.5% for the same trade on random dates

Average result per trade

+0.13 R

vs +0.11 R on random dates

What this means. No measurable difference from the rest of its market over the next 10 bars.

Timeline

Entry triggered, after the pattern: 1 day · middle half 1 to 1 · on 62,842 triggered entries; Stop order beyond the pattern's extreme. 157 of these entries are not among the 62,685 trades: still open at the end of our data, or left out by the trade rules.
Time to the 2:1 target, when hit: 10 days · middle half 5 to 21 · on 23,370 trades that hit it
Time to the stop, when hit: 5 days · middle half 2 to 11 · on 38,537 trades that hit it
Time in the trade, all exits: 7 days · middle half 3 to 15 · on 62,685 trades

Size and trade path

Pattern range, high to low: 3.8% · middle half 2.6% to 5.8% · on 80,330 occurrences
Range vs average bar (ATR): 1.28× · middle half 1.02× to 1.61× · on 80,330 occurrences
Best open profit during the trade: 1.13 R · middle half 0.34 R to 2.10 R · on 62,685 trades
Stopped trades that were first up 1 R: 23.7% · on 38,537 stopped trades; Trades a stop moved to breakeven at +1 R would have closed flat instead of at a loss
Entry order triggered: 78.2% · on 80,330 occurrences

Medians, each on the cases named on its line; "middle half" spans the 25th to 75th percentile; no value under 30 cases.

How we detect it. After a downtrend: a black candle, then a white candle opening and closing at or above the middle of the black body. Candlestick counts are not checked against planted examples, so they may not be exhaustive.

All measurements (15 rows)

10-bar move: did price go the expected way?

Figures in gray: fewer than 30 occurrences, not interpreted. Excess return is signed so that positive favors the pattern. The test uses the bootstrap’s standard error and the interval its percentiles: near the 0.05 line, or on a few extreme moves, an interval can leave out zero while the test does not pass, and the test decides. Stock data misses most delisted companies, a survivorship bias we have not sized, which can flatter stock rows.
Market	Occurrences	Pattern	Random bars	Excess	10-bar move verdict
Crypto · 1-hour	19,888	47.0%	47.8%	+0.02%	No clear edge
Crypto · 4-hour	1,337	47.0%	46.4%	−0.04%	No clear edge
Crypto · Daily	21	42.9%	38.7%	+4.61%	Not enough data
US stocks · Daily	74,273	54.0%	54.0%	−0.03%	No clear edge
ETFs · Daily	3,870	55.9%	56.2%	−0.17%	Weak, below chance
Indices · Daily	1,405	56.5%	56.9%	−0.20%	Weak, below chance
Forex · Daily	94	63.8%	49.0%	+0.63%	Promising
Commodities · Daily	667	51.7%	51.7%	−0.10%	No clear edge
All markets · Daily	80,330	54.1%	54.2%	−0.03%	No clear edge
US stocks · Weekly	5,148	63.6%	57.4%	−0.06%	No clear edge
ETFs · Weekly	372	67.3%	60.9%	+0.42%	No clear edge
Indices · Weekly	93	70.7%	61.5%	−0.27%	No clear edge
Forex · Weekly	22	57.1%	49.6%	+0.33%	Not enough data
Commodities · Weekly	64	47.6%	53.3%	+2.42%	No clear edge
All markets · Weekly	5,699	63.8%	57.6%	−0.005%	No clear edge

2:1 trade: target hit and average result

R = initial risk of the trade. Entry by an order at the trigger level, filled at the open when a bar opens beyond it. Exit at the stop or the target, or at the open when a bar opens beyond either one; otherwise at the close after 100 bars. When one bar touches both the stop and the target, the loss is counted. No fees or slippage. n/a = not measured. Per trade: average result, against the same trade on random dates. Figures in gray: fewer than 30 closed trades, not interpreted.
Market	Trades	Target hit	Same trade, random dates	Per trade	2:1 trade verdict
Crypto · 1-hour	15,541	30.9%	32.9%	−0.06 R vs −0.01 R	Weak, below chance
Crypto · 4-hour	1,011	32.0%	32.1%	−0.03 R vs −0.03 R	No clear edge
Crypto · Daily	17	23.5%	36.8%	−0.29 R vs +0.10 R	Not enough data
US stocks · Daily	57,989	37.1%	36.3%	+0.13 R vs +0.11 R	No clear edge
ETFs · Daily	2,959	39.0%	37.3%	+0.16 R vs +0.14 R	No clear edge
Indices · Daily	1,131	39.2%	40.1%	+0.17 R vs +0.23 R	No clear edge
Forex · Daily	73	43.8%	31.7%	+0.31 R vs −0.04 R	No clear edge
Commodities · Daily	516	38.2%	37.6%	+0.18 R vs +0.15 R	No clear edge
All markets · Daily	62,685	37.3%	36.5%	+0.13 R vs +0.11 R	No clear edge
US stocks · Weekly	4,299	48.2%	42.3%	+0.46 R vs +0.30 R	No clear edge
ETFs · Weekly	319	51.7%	43.1%	+0.56 R vs +0.32 R	No clear edge
Indices · Weekly	80	46.3%	39.6%	+0.38 R vs +0.22 R	No clear edge
Forex · Weekly	15	33.3%	28.9%	+0.08 R vs −0.11 R	Not enough data
Commodities · Weekly	53	37.7%	38.8%	+0.14 R vs +0.18 R	No clear edge
All markets · Weekly	4,766	48.2%	42.2%	+0.46 R vs +0.29 R	No clear edge

Data updated November 5, 2026 · code version c2a1683f · Read the methodology. We measure every pattern on crypto and forex (1-hour, 4-hour, daily and weekly charts) and US stocks, ETFs, indices and commodities (daily and weekly charts). On 1-hour and 4-hour forex charts the pattern only forms at the weekly open, across the weekend gap, so we do not publish those forex rows. Any other market or timeframe from that list missing from the tables above had no occurrence.

What you often read

“The above the stomach candlestick pattern is a reliable bullish reversal signal.”

What our data shows

On 80,330 daily occurrences, it moved in the expected direction 54.1% of the time, against 54.2% for random bars: no clear edge, since the average excess return is not statistically significant.

Table quoted in the text (verdicts and every market: see All measurements)

Market and timeframe	Patterns tested (2:1 trades)	Up 10 bars later	Random bars	2:1 target hit	Same setup, random dates	Expectancy, pattern / random (before costs)
All markets, daily	80,330 (62,685)	54.1%	54.2%	37.3%	36.5%	+0.13 R / +0.11 R
US stocks, daily	74,273 (57,989)	54.0%	54.0%	37.1%	36.3%	+0.13 R / +0.11 R
ETFs, daily	3,870 (2,959)	55.9%	56.2%	39.0%	37.3%	+0.16 R / +0.14 R
Indices, daily	1,405 (1,131)	56.5%	56.9%	39.2%	40.1%	+0.17 R / +0.23 R
Commodities, daily	667 (516)	51.7%	51.7%	38.2%	37.6%	+0.18 R / +0.15 R
Crypto, hourly	19,888 (15,541)	47.0%	47.8%	30.9%	32.9%	−0.06 R / −0.01 R
All markets, weekly	5,699 (4,766)	63.8%	57.6%	48.2%	42.2%	+0.46 R / +0.29 R

Read the table in pairs of columns. On the daily timeframe, 54.1% of patterns were followed by a rise 10 sessions later. That sounds bullish until you see that 54.2% of random sessions on the same assets were too: stocks rise a little more often than they fall. The excess return over the rest of the market after 10 sessions is −0.03%, with a 95% confidence interval from −0.13% to +0.06%. Zero is inside the interval: no clear edge. The result was similar in both halves of the history (−0.03% and −0.03%, a descriptive split, not in the tables).

The 2:1 setup on the daily timeframe had a positive expectancy, +0.13 R per position before costs, but the same entry, stop and target on random dates averaged +0.11 R. Most of the gain is explained by the market, not by the pattern, and fees and slippage would take part of the rest.

The weekly chart and forex exceptions

Three results stand out. On the weekly timeframe, 63.8% of patterns were up 10 weeks later against 57.6% for random weeks, and the 2:1 setup reached its target 48.2% of the time against 42.2%. Yet neither gap passes our statistical test: random weeks on the same assets rose often too, and the average result per trade does not stand out once the error margin is counted. On daily forex, 63.8% of 94 patterns were up 10 bars later against 49.0% for random bars, an average excess return of +0.63%, rated Promising on the 10-bar move, but the sample is small and the gap does not survive our correction. Daily ETFs and indices went the other way: their average excess returns, −0.17% and −0.20%, mean that each moved against the expected direction relative to its market, both rated Weak, below chance.

Is the above the stomach pattern reliable in crypto markets?

No. On 19,888 hourly crypto patterns, 47.0% were up 10 hours later against 47.8% for random hours, and the 2:1 setup had a negative expectancy (−0.06 R on 15,541 trades). On the daily crypto timeframe, the 21 occurrences are too few to conclude anything.

The full table, with every market, timeframe and error margin, is in the statistics section of this page. The method is published in our methodology.

Real examples of the above the stomach pattern

The gallery in this section shows real above the stomach patterns, picked by our bench (best and worst results, textbook shapes, most recent, random draws), with their actual outcome. On this pattern the Textbook tag adds no long-body filter, since our rule has no long-body threshold. Two daily stock cases are told in detail below, with prices adjusted for splits and dividends. In both, the white candle opens above the midpoint of the black body after an overnight gap. One reached its target and one was stopped out: two cases prove nothing, and the tables above are what count.

A position that reached its 2:1 target

On September 4, 2012, Meta (META) printed a black candle, from 17.91 down to 17.56. On September 5, the next session opened at 18.10, above the midpoint of that body, and closed at 18.40 with a white candle. On September 6, prices rose through the buy stop at the high of the two candles (18.57), with the stop at the bottom of the setup (17.38) and a 2:1 target at 20.95. The target was reached on September 12, 2012. Ten sessions after the pattern, META was 25.4% higher.

A position stopped out five weeks later

On May 26, 2010, Coca-Cola (KO) printed a black candle, from 15.37 down to 15.14. On May 27, it opened at 15.30, above the midpoint of that body, and closed at 15.49. The buy stop at the high of the two candles (15.49) was triggered on May 28, with the stop at 15.10 and a 2:1 target at 16.28. Ten sessions after the pattern, KO was still 1.7% higher, but the target never came, and on July 1, 2010, prices fell through the stop: a full 1 R loss.

Best timeframes for trading this pattern

The pattern is most frequent on the daily stock market timeframe, where overnight gaps create it naturally. The weekly timeframe gave the best raw results (48.2% of 2:1 targets hit), but random weeks on the same assets did well too (42.2%), and the gap in average result per trade (+0.46 R against +0.29 R) does not pass our statistical test. On the 4-hour timeframe and on hourly crypto, which provides almost all hourly cases, the setup lost money on average before costs.

Can I use this pattern for day trading?

Not on our data. On hourly crypto charts it is common (19,888 occurrences, one every 738 bars), but it shows no clear edge there: 47.0% were up 10 hours later against 47.8% for random hours, and the 2:1 trade did slightly worse than random dates (−0.06 R against −0.01 R), a gap rated Weak, below chance. On hourly forex it forms almost only at the weekly open, across the weekend gap, so that row measures the gap rather than the pattern and we do not publish it.

Context around the pattern: what we tested

The classic reading gives more weight to an above the stomach that appears after an extended decline, on a support level, with high volume, than to one in the middle of a range. Three things are worth checking before acting:

the trend: how long and how steep the decline before it was;
the level: a support or resistance zone near the setup, which can help place the stop and the target;
the confirmation: a following candle that ends above the high of the pattern, or a rise in volume.

Our breakdowns on volume and on the 200-day moving average, above, show how small the effect of each filter was on average. We have not tested the length of the decline or support levels, and no filter we measured turned this pattern into a clear edge.

Common mistakes to avoid

Ignoring the trend: without a prior downtrend, it is not a reversal pattern.
Buying before the close: the white candle is only valid once it has closed above the midpoint.
Confusing it with a piercing pattern: that one opens below the prior bottom; the above the stomach opens above the midpoint.
Using it on its own: our data shows no clear edge on the daily timeframe. Use it with a plan, not as a reason to buy.
Remembering only the winners: looking back, the successful cases are easy to see. Count every occurrence your rule finds, as our bench does.

Pros and cons of the above the stomach pattern

Advantages

Simple to identify: two candles and one level, the midpoint of the body of the first candle.
Clear invalidation: the stop goes below the two candles.
Frequent on stocks: about once every 99 daily bars.

Disadvantages

No gap over chance that passes our test on the daily timeframe.
Rare on daily crypto and on forex, where prices seldom gap; common on hourly crypto, where the 2:1 trade rates Weak, below chance.
It needs a following bar above the high before entry, so part of the move is missed.
Wide stop, larger than the range of an average session.
About one setup in five is canceled before entry.

Using automated tools to scan for this pattern

The open-source TA-Lib library has no function for the above the stomach pattern, so a scanner built on it will not flag it. You can write a simple script on TradingView or in Python: compare the open and close of the white candle with the midpoint of the black body, and add a trend condition. Scripts help, but a scan only gives information: it is important to read each signal in its context. Before using it with real money, test it on past data and compare the results with random dates, as we do.

Frequently asked questions about the above the stomach pattern

Is the above the stomach pattern bullish or bearish?

Bullish. It forms after a downtrend and is read as a potential reversal. Its bearish counterpart is below the stomach, a bearish reversal pattern with the opposite shape.

Why is it called above the stomach?

The black body is seen as the stomach of the pattern. The white candle opens and closes above its middle, so it sits above the stomach.

Which candlestick patterns confirm a bearish move instead?

Below the stomach, the evening star, the bearish engulfing, the dark cloud cover, the hanging man and the three black crows are classic bearish reversal signals. Seeing two black crows after a rally is not enough: the three black crows need three. On our bench, the evening star reached its 2:1 target in 26.6% of cases on the daily timeframe against 25.8% on random dates, with no measurable difference in average result per trade.

Is the above the stomach pattern a hammer or a doji?

No. A hammer and a doji are single candles; the above the stomach is made of two candlesticks. When you blend the two candles into one, though, the result can look like a hammer or a hanging man, as explained above.

How does this pattern perform in volatile conditions?

The pattern itself is a volatile event: on the daily timeframe its median range is 1.28 times the average range of recent sessions. A larger range means a wider stop and a smaller position for the same risk.

What is the difference between a reversal and a continuation signal?

A reversal signal suggests that the current trend will turn; a continuation signal suggests it will resume after a pause. The above the stomach is a reversal pattern by definition, because it requires a prior downtrend.

Which candlestick pattern is the most reliable for beginners?

None is reliable enough to trade alone. In the comparison table above (all markets, daily), no 2:1 setup kept a gap over chance that passes our statistical test. The inverted hammer did not beat random dates on target hits, and its 2:1 setup averaged −0.08 R per position before costs, against −0.08 R on random dates, so it lost money either way. The morning star showed the largest gap in target hits in that table (40.6% against 34.2%), but its gap in average result per trade does not pass our test once we correct for multiple testing. Simple candles such as the hammer are the easiest to learn; the hammer's trade in that table (+0.06 R against +0.09 R) did no better than random dates.

How many candlestick patterns should a trader learn?

A handful is enough. The individual signals repeat each other: a hammer, a dragonfly doji and a takuri tell almost the same story. The logic of bodies and shadows covers most of the list, so it is a better place to start than a list of names.

Can candlestick patterns be used for automated trading?

Yes. A candlestick pattern is defined by simple rules on open, high, low and close, so a computer can detect it without judgment. That is what our bench does on every bar of history. Automation also makes it easy to compare a signal with random entries before using it.

Is it possible to trade using only candlestick charts?

Some traders do, but our data does not support using candlestick patterns as the only input: on daily charts, none of the bullish patterns compared on this page has a gap over chance that survives our correction for multiple testing, on the 10-bar move or on the 2:1 setup, and the inverted hammer's setup lost money on average, as much as on random dates (−0.08 R against −0.08 R on random dates). If you use them, use them inside a tested plan, with the stop and the position size set before entry.

Is the above the stomach a continuation pattern?

No. A continuation pattern, such as the rising three methods, appears inside a trend and suggests it will resume. The above the stomach appears after a decline and suggests that the decline is over, so it is a bullish reversal pattern. If it forms in the middle of an uptrend, after a single lower close, it does not meet the definition.

What happens after an above the stomach pattern?

On the daily timeframe, the next trading session closed up in 49.6% of cases, against 50.7% for random sessions. After 20 sessions, 56.1% were up, against 55.5% for random sessions. These two horizons are descriptive figures, not in the tables, and were not tested for significance.

Technical analysis tips for this pattern

Mark the midpoint of the black body in advance: it is the level the next open and close must hold.
Note support and resistance zones near the setup before the open, so the plan is ready.
Check the day's volume after the close as a confirmation; on our bench, high volume did not raise the hit rate (see above), so treat it as optional.
Look at the higher timeframe: a daily setup against a falling weekly trend fights the larger move (a filter we have not tested).
Keep a log of every setup you see, winners and losers, with the information you had at the time.

Summary for traders

Above the stomach: after a downtrend, a black candle, then a white candle opening and closing at or above the middle of the body of the first candle.
It needs a gap up, so it is common on stocks and on hourly crypto, and rare on daily crypto and forex.
On 80,330 daily patterns, 54.1% were up 10 sessions later, against 54.2% for random sessions.
The 2:1 setup reached its target 37.3% of the time, against 36.5% for the same setup on random dates, but its average result per trade does not pass our statistical test.
The weekly timeframe gave better raw results, but random weeks did well too, and the gap does not pass our test.

This page is information, not financial or investment advice. Trading carries a risk of loss: define your stop before entry and commit only a small share of your account to each position.

About the author and the data. Written by Amaury, founder of PatternsWizard, who is passionate about finance, quantitative trading and data analysis. He built the PatternsWizard test bench, which applies the same published rules to full market history: crypto, forex, US stocks, ETFs, indices and commodities. Trades and win rates are compared with random bars on the same assets, excess returns with the rest of the market, with error margins and a correction for multiple testing, and the whole pipeline is checked on random-walk prices, where nothing can be predicted. Statistics on this page were generated on November 5, 2026. The full methodology explains every step.

How we tested this pattern

Every pattern's results on one sheet