The Predictive Power of Candlestick Patterns - An Empirical Test of Technical Indicators on the Swedish Stock Market Using GARCH-M and Bootstrapping
(2016) NEKH01 20161Department of Economics
- Abstract
- Using statistical tests, the profitability and predictive power of a technical analysis strategy based on candlestick patterns is tested. Candlestick technical analysis is a short term strategy based on the open, high, low and closing prices of a financial asset. The results show that the strategy is not profitable in the short term and has no predictive power when applied to 29 OMXS30 stocks over the period from 2007 to 2015.
- Popular Abstract (Swedish)
- Genom att använda statistiska tester så testas lönsamheten och prognosförmågan av en teknisk analys strategi baserad på candlestick mönster. Analys av Candlestick mönster är en kortsiktig strategi baserad på öppnings-, hög-, låg- och stängningskurser för en finansiell tillgång. Resultaten visar att strategin inte är lönsam på kort sikt och att den inte har någon prognosförmåga när den appliceras på 29 OMXS30 aktier under perioden från 2007 till 2015.
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/8877738
- author
- Jönsson, Max LU
- supervisor
-
- Dag Rydorff LU
- organization
- course
- NEKH01 20161
- year
- 2016
- type
- M2 - Bachelor Degree
- subject
- keywords
- Candlestick patterns, technical analysis, bootstrap, ARCH, GARCH-M, efficient market hypothesis, random walk model, OMXS30
- language
- English
- id
- 8877738
- date added to LUP
- 2016-06-21 17:10:31
- date last changed
- 2016-06-21 17:10:31
@misc{8877738, abstract = {{Using statistical tests, the profitability and predictive power of a technical analysis strategy based on candlestick patterns is tested. Candlestick technical analysis is a short term strategy based on the open, high, low and closing prices of a financial asset. The results show that the strategy is not profitable in the short term and has no predictive power when applied to 29 OMXS30 stocks over the period from 2007 to 2015.}}, author = {{Jönsson, Max}}, language = {{eng}}, note = {{Student Paper}}, title = {{The Predictive Power of Candlestick Patterns - An Empirical Test of Technical Indicators on the Swedish Stock Market Using GARCH-M and Bootstrapping}}, year = {{2016}}, }