Journal article
Performance of candlestick analysis on intraday futures data



Publication Details
Authors:
Fock, H.; Klein, C.; Zwergel, B.
Publication year:
2005
Journal:
Journal of Derivatives
Pages range:
28-40
Volume number:
13
Issue number:
1
ISSN:
1074-1240

Abstract


Candlestick analysis is a form of technical analysis based on recognition of visual patterns in market returns. Candlestick analysis is very popular in Asia. This analysis of the predictive power of candlestick patterns uses daily intraday DAX and Bund futures data starting January 1, 2002, and ending December 31, 2003. A mathematical definition scheme enables an objective and computerized identification of the candles. Even without taking transaction costs into account the results are quite poor. In most cases, the results are not significantly better than results for a benchmark with randomized transactions.



Last updated on 2019-25-07 at 15:17

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