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The Predictive Power of Candlestick Patterns - An Empirical Test of Technical Indicators on the Swedish Stock Market Using GARCH-M and Bootstrapping

Jönsson, Max LU (2016) NEKH01 20161
Department 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:
author
Jönsson, Max LU
supervisor
organization
course
NEKH01 20161
year
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},
  keyword      = {Candlestick patterns,technical analysis,bootstrap,ARCH,GARCH-M,efficient market hypothesis,random walk model,OMXS30},
  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},
}