A financial decision supporting system based on the fuzzy candlestick pattern is proposed and developed. We model Japanese candlestick patterns by using fuzzy linguistic variables. Japanese candlestick theory is an empirical model of investment decision. The theory assumes that the trend of financial time series could be predicted by identifying specific candlestick patterns in the candlestick ...

Candlestick charts are a visually appealing method of presenting price movements of securities. It has been developed in Japan centuries ago. The depiction of movements as candlesticks tends to exhibit recognizable patterns that allow for predicting future price movements. Common approaches of employing candlestick analysis in automatic systems rely on a manual a-priori specification of well-kn...

Candlestick charts are a type of financial chart for tracking the movement of securities. Some of the earliest technical trading analysis was used to track prices of rice in the 18th century. Some investors find them more visually appealing than the standard bar charts and the price actions easier to interpret. In technical analysis, a candlestick pattern is a movement in prices shown graphical...

Title: The Predictive Power of Candlestick Patterns Seminar date: 31 June 2016 Course: NEKH01 Bachelor Thesis

The paper addresses the problem of using Japanese candlestick methodology to analyze stock or forex market data by neural nets. Self organizing maps are presented as tools for providing maps of known candlestick formations. They may be used to visualize these patterns, and as inputs for more complex trading decision systems. In that case their role is preprocessing, coding and pre-classificatio...

Stock market prediction is an important area of financial forecasting, which is of great interest to stock investors, stock traders and applied researchers. To determine the buy and sell time is one of the most important issues for investors in stock market. In this paper, a fuzzy approach using the famous candlestick method to stock market timing is investigated. Drawing candlesticks are very ...

Using two sets of data, including daily prices (open, close, high and low) of all S&P 500 stocks between 1992 and 1996, we perform a satistical test of the predictive capability of candlestick patterns. Out-of-sample tests indicate statistical signiŽcance at the level of 36 standard deviations from the null hypothesis, and indicate a proŽt of almost 1% during a two-day holding period. An essent...

The paper proposes an application of Empirical Mode Decomposition in technical analysis. The EMD-candlestick is designed to replace the traditional candlestick as the signal generators in technical trading strategies to improve the profitability. We investigate a representative set of technical trading strategies, including moving average, trading range break-out, relative strength index, and i...

Chart patterns and indicators are popular technical tools for making investment decisions. This article presents a trading strategy combining price movement patterns, candlestick chart patterns, and trading indicators, including Moving Average, Exponential Moving Average, Bollinger Bands, On Balance Volume, Relative Strength Index, Moving Average Convergence Divergence, and Stochastic Oscillato...