Market Timing with Candlestick Technical Analysis
Ben R. Marshall
Massey University - Department of Economics and Finance
Martin R. Young
Massey University - School of Economics and Finance
Lawrence C. Rose
April 16, 2007
We investigate the profitability of the quantitative market timing technique of candlestick technical analysis in the U.S. equity market. Despite being used for centuries in Japan and now having a wide following amongst market practitioners globally, there is little research documenting its profitability or otherwise. We find that these strategies are not generally profitable when applied to large U.S. stocks. Basing trading decisions solely on these techniques does not seem sensible but we cannot rule out the possibility that they compliment some other market timing techniques.
Number of Pages in PDF File: 18
Keywords: Market Timing, Candlesticks, Technical Analysis, Quantitative Investment
JEL Classification: G12, G14working papers series
Date posted: April 16, 2007 ; Last revised: September 14, 2009
© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo1 in 0.297 seconds