Is candlestick continuation patterns applicable in Malaysian stock market?
Technical analysis is deemed to be an anathema to the modern finance theory as it contradicts with the efficient market hypothesis, typically the weak form market efficiency which forbids the utilization of past prices and trading volume data to predict future market movement.However, the technical...
| Main Authors: | , , , |
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| Format: | Conference or Workshop Item |
| Language: | English |
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2017
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| Online Access: | https://repo.uum.edu.my/id/eprint/21034/1/shsconf_four2017%201%207iiv.pdf |
| _version_ | 1825804484253581312 |
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| author | Chin, Chee-Ling Jais, Mohamad Sulong Balia, Sophee Tinggi, Michael |
| author_facet | Chin, Chee-Ling Jais, Mohamad Sulong Balia, Sophee Tinggi, Michael |
| author_sort | Chin, Chee-Ling |
| collection | UUM |
| description | Technical analysis is deemed to be an anathema to the modern finance theory as it contradicts with the efficient market hypothesis, typically the weak form market efficiency which forbids the utilization of past prices and trading volume data to predict future market movement.However, the technical indicator of candlestick trading strategy is widely applied by traders for short term investment.This study thus investigates
on the predictive power of candlestick charting which concentrates on the application of continuation patterns in Malaysian stock market from 2000 to 2014.Skewness adjusted t-test is employed to test the statistical significance of candlesticks’ profitability.After taking into account the transaction costs, sub-sample, and out-of-sample test, the findings show
that only Falling Window pattern after a prevailing downtrend shows predictive power with bearish signals indicated significantly during the 5- day holding period. |
| first_indexed | 2024-07-04T06:16:17Z |
| format | Conference or Workshop Item |
| id | uum-21034 |
| institution | Universiti Utara Malaysia |
| language | English |
| last_indexed | 2024-07-04T06:16:17Z |
| publishDate | 2017 |
| record_format | eprints |
| spelling | uum-210342017-02-23T03:55:02Z https://repo.uum.edu.my/id/eprint/21034/ Is candlestick continuation patterns applicable in Malaysian stock market? Chin, Chee-Ling Jais, Mohamad Sulong Balia, Sophee Tinggi, Michael HG Finance Technical analysis is deemed to be an anathema to the modern finance theory as it contradicts with the efficient market hypothesis, typically the weak form market efficiency which forbids the utilization of past prices and trading volume data to predict future market movement.However, the technical indicator of candlestick trading strategy is widely applied by traders for short term investment.This study thus investigates on the predictive power of candlestick charting which concentrates on the application of continuation patterns in Malaysian stock market from 2000 to 2014.Skewness adjusted t-test is employed to test the statistical significance of candlesticks’ profitability.After taking into account the transaction costs, sub-sample, and out-of-sample test, the findings show that only Falling Window pattern after a prevailing downtrend shows predictive power with bearish signals indicated significantly during the 5- day holding period. 2017 Conference or Workshop Item PeerReviewed application/pdf en cc4_by https://repo.uum.edu.my/id/eprint/21034/1/shsconf_four2017%201%207iiv.pdf Chin, Chee-Ling and Jais, Mohamad and Sulong Balia, Sophee and Tinggi, Michael (2017) Is candlestick continuation patterns applicable in Malaysian stock market? In: 17th Annual Conference of the Asian Academic Accounting Association (2016 FourA Conference), 20-22 November 2016, Kuching, Sarawak. http://doi.org/10.1051/shsconf/20173407009 doi:10.1051/shsconf/20173407009 doi:10.1051/shsconf/20173407009 |
| spellingShingle | HG Finance Chin, Chee-Ling Jais, Mohamad Sulong Balia, Sophee Tinggi, Michael Is candlestick continuation patterns applicable in Malaysian stock market? |
| title | Is candlestick continuation patterns applicable in Malaysian stock market? |
| title_full | Is candlestick continuation patterns applicable in Malaysian stock market? |
| title_fullStr | Is candlestick continuation patterns applicable in Malaysian stock market? |
| title_full_unstemmed | Is candlestick continuation patterns applicable in Malaysian stock market? |
| title_short | Is candlestick continuation patterns applicable in Malaysian stock market? |
| title_sort | is candlestick continuation patterns applicable in malaysian stock market |
| topic | HG Finance |
| url | https://repo.uum.edu.my/id/eprint/21034/1/shsconf_four2017%201%207iiv.pdf |
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