Are candlestick technical trading strategies profitable in the Japanese equity market?

Marshall, Ben R.; Young, Martin R.; Cahan, Rochester H.

doi:10.1007/s11156-007-0068-1

Cited by 39 publications

(27 citation statements)

References 21 publications

(16 reference statements)

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“…Another study by Marshall et al (2008) investigated the profitability of the old famous market timing technique; candlestick in Japanese equity market during the 1975-2004 time horizon using daily price data for the largest 100 stocks that were included on Tokyo Stock Exchange.…”

Section: Published By Sciedu Press 30 Issn 1927-5986 E-issn 1927-5994mentioning

confidence: 99%

Testing the Effect of Technical Analysis Strategies on Achieving Abnormal Return: Evidence from Egyptian Stock Market

Ansary

Atuea²

2017

AFR

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This study examined the effect of using inter and exit signals of three of the most common used technical analysis strategies on achieving abnormal return compared with the buy and hold strategy in the Egyptian security market. The tests were done using data for short term, relatively long term, during bull and bear market. Using bootstrap methodology and wilcoxon/mann-whitney test for daily closing prices during the period from 1-1-1998 to 14-1-2016, the results indicated that; First, market timing with technical analysis yields more return and reduces risk in general. Second, short term investing is not recommended at all, as it is less profitable even than bear market period. Third, in long term and during bull market technical analysis is more profitable than short term. Fourth, technical analysis importance have been reduced during the last few years due to the effect of the Egyptian revolution on the security market. As for investors, they should use technical analysis trading rules to determine when to enter and exit the market, so that they can improve their investment decisions, as it leads to achieve abnormal return and reduces risk more than buy and hold strategy in all cases, while pay more attention for the current and political events than before.

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Section: Published By Sciedu Press 30 Issn 1927-5986 E-issn 1927-5994mentioning

confidence: 99%

Testing the Effect of Technical Analysis Strategies on Achieving Abnormal Return: Evidence from Egyptian Stock Market

Ansary

Atuea²

2017

AFR

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“…The profitability of candlestick trading strategies is further confirmed by Goo et al (2007), Lu et al (2012) and Lu (2014). On the other hand, Marshall et al (2006Marshall et al ( , 2008 and Horton (2009) find that candlestick trading strategies do not have any predictive value for major equity markets. In addition, Fock et al (2005) and Duvinage et al (2013) employ 5-min data to investigate the German bond futures market and the U.S. stock market, respectively, and both conclude that candlestick trading strategies do not improve investment performance.…”

Section: Introductionmentioning

confidence: 77%

“…The second type of trend is the EMA 10 trend proposed by Marshall et al (2006), and is also used in Marshall et al (2008). The EMA 10 trend is defined as a ten-day exponential moving average of closing prices, as follows:…”

Section: Trend Definitionsmentioning

confidence: 99%

Trend definition or holding strategy: What determines the profitability of candlestick charting?

Chen

Hsu

2015

Journal of Banking & Finance

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“…Underpinning these findings is a study by Marshall (2008) who found that the technical analysis was not profitable tool once it is applied on large stocks in the Japanese market over the 1975-2004. Marshall (2008 was examining candlestick test in the Japanese equity market.…”

Section: Literature Reviewmentioning

confidence: 99%

Advantages of Using Technical Analysis to Predict Future Prices on the Amman Stock Exchange

Abbad¹,

Fardousi²,

Abbad

2014

IJBM

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Many studies have examined the benefits of conducting technical analysis on the stock market, with mixed results. With a view to clarifying the usefulness of technical analysis, this paper examines the capacity of technical analysis rules to predict future prices on the Amman Stock Exchange. As data for this research, a sample of closing prices for the general index on the Amman Stock Exchange was used. Our results show that technical analysis does have the power to predict the movement of the stock price, and to generate profitable buy and sell signals.

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Are candlestick technical trading strategies profitable in the Japanese equity market?

Abstract: Candlestick, Technical analysis, Japan, Market timing, G12, G14,

Cited by 39 publications

References 21 publications

Testing the Effect of Technical Analysis Strategies on Achieving Abnormal Return: Evidence from Egyptian Stock Market

Testing the Effect of Technical Analysis Strategies on Achieving Abnormal Return: Evidence from Egyptian Stock Market

Trend definition or holding strategy: What determines the profitability of candlestick charting?

Advantages of Using Technical Analysis to Predict Future Prices on the Amman Stock Exchange

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