18 Pages Posted: 16 Apr 2007 Last revised: 14 Sep 2009
Date Written: 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.
Keywords: Market Timing, Candlesticks, Technical Analysis, Quantitative Investment
JEL Classification: G12, G14
Suggested Citation: Suggested Citation
Marshall, Ben R. and Young, Martin R. and Rose, Lawrence C., Market Timing with Candlestick Technical Analysis (April 16, 2007). Available at SSRN: https://ssrn.com/abstract=980583 or http://dx.doi.org/10.2139/ssrn.980583
By Meb Faber