A Comprehensive Look at the Predictive Information in Japanese Candlestick

Haibin Xie, Xiujuan Zhao, Shouyang Wang
2012 Procedia Computer Science  
This article takes a comprehensive look at the performance of Japanese Candlestick in forecasting equity returns. We find that Japanese Candlestick does provide predictive information in both in-sample (IS) and out-of-sample (OOS) forecasts; and there is significant information spillover from the U.S equity market to the other markets. The results obtained are instructive to traders and portfolio managers but challenging to academic claims.
doi:10.1016/j.procs.2012.04.132 fatcat:htesps3jije6zkh6sas74j7qhq