Candlestick Pattern Research Analysis, Future and Beyond: A Systematic Literature Review Using PRISMA

Abstract

Online stock market circumstances allow traders to examine in real time or periodically with free or paid criteria and indicators. Candlestick charts and historical data help traders predict stock values. These forecasting methods rely on traders' experience. Such unscientific judgements lack empirical facts and mathematically established theories, which are rarely published in recognized scientific journals. Initial research revealed a gap between candlestick research and practice, creating a novel idea without scientific backing. Given the different study possibilities, the literature review must address the following questions: what's the trend in candlestick indicator research over the past five years, and what's ahead for candlestick stock price predictions? This study used PRISMA to conduct its literature review. Ten articles were duplicated in three indexes. Last, the article content is compared to the research questions. Only 20 Scopus (S) papers have more than 10 citations, and 2 don't have full paper access, so only 11 match the conditions. 100 publications were obtained from Google Scholar (GS), then re-filtered to obtain 19 with more than 10 citations and 6 without full paper access, for a total of 11 articles. 100 articles from Semantic Scholar (SS) met the first requirements. Duplicate articles in each database were rechecked to produce 24 valid articles for future research. Economic and IT publications employ candlestick patterns in the study. SLR screening and literature research yielded expert systems, historical research, ichimoku, local studies, and technological analysis. Expert system group dominates research, but no technique dominates implementation. Future research can be new. Candlestick patterns have only been tested on local stock markets in one country; therefore, economic crises, commercial acts, or conflicts may lead the method to fail.