Does the Bullish Engulfing work on Aave?

On Aave's daily chart, after a bullish engulfing Aave rose within 7 days 46% of the time across 83 past cases. On an ordinary day it did so 50% of the time.

No edge: a coin flipIndistinguishable from an ordinary day on this coin. Most patterns land here.
On AaveNo edge
46% of 83 casesbaseline 50%
All coinsNo edge
45% of 14,571 casesbaseline 46%
Median move after the pattern -0.84% vs +0.05% from any bar; after a 0.2% round trip of fees -1.04%.

Daily chart

WithinAaveOrdinary barCasesAll coinsVerdict
24 hours56% (47%–65%)49%10748% vs 48%No edge
30 days44% (30%–59%)47%4343% vs 42%No edge
7 days46% (35%–56%)50%8345% vs 46%No edge

4-hour chart

WithinAaveOrdinary barCasesAll coinsVerdict
24 hours50% (46%–54%)49%56148% vs 49%No edge
7 days51% (44%–57%)50%22548% vs 48%No edge

How this is measured: each occurrence is counted from the bar where the pattern became knowable, overlapping cases are dropped, and the result is compared with how often Aave moved the same way from any random bar over the same window. A pattern only earns "beat the baseline" when the difference is larger than luck explains across all the tests we run. Full method.

Share