ABSTRACT
Candlestick charts are often used in speculative markets to describe and forecast asset price movements. This book is the first of its kind to investigate candlestick charts and their statistical properties. It provides an empirical evaluation of candlestick forecasting. The book proposes a novel technique to obtain the statistical properties of candlestick charts. The technique, which is known as the range decomposition technique, shows how security price is approximately logged into two ranges, i.e. technical range and Parkinson range.
Through decomposition-based modeling techniques and empirical datasets, the book investigates the power of, and establishes the statistical foundation of, candlestick forecasting.
TABLE OF CONTENTS
part I|11 pages
Introduction and outline
part II|12 pages
Candlestick
part III|20 pages
Statistical models
part IV|55 pages
Applications
part V|5 pages
Conclusions and future studies