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Candlestick Charting and Trading Volume: Evidence from Bursa Malaysia

Technical analysis is deemed to be a futile practice among academicians who propose efficient market hypothesis, typically the weak form market efficiency which strongly protests the application of past prices and trading volume data for prediction of future market movement. As candlestick chartin...

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Main Authors: Chee, Ling Chin, Mohamad, Jais, Sophee Sulong, Balia, Ayoib, Che Ahmad, Azlan, Zainol Abidin
Format: E-Article
Language:English
Published: EconJournals 2016
Subjects:
H Social Sciences (General)
HG Finance
Online Access:http://ir.unimas.my/id/eprint/18130/7/Candlestick%20Charting%20and%20Trading%20Volume.pdf
http://ir.unimas.my/id/eprint/18130/
http://www.econjournals.com
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spelling my.unimas.ir.181302017-10-17T01:32:47Z http://ir.unimas.my/id/eprint/18130/ Candlestick Charting and Trading Volume: Evidence from Bursa Malaysia Chee, Ling Chin Mohamad, Jais Sophee Sulong, Balia Ayoib, Che Ahmad Azlan, Zainol Abidin H Social Sciences (General) HG Finance Technical analysis is deemed to be a futile practice among academicians who propose efficient market hypothesis, typically the weak form market efficiency which strongly protests the application of past prices and trading volume data for prediction of future market movement. As candlestick charting is one of the oldest technical indicators for short term investment, therefore this study examines the predictability of candlestick charting with combination to trading volume for Malaysian stock market within the period of 2000-2014. Skewness adjusted t-test is employed to test the statistical significance of candlestick returns. After taking into account the transaction costs and also out-of-sample test as robustness checking, the findings show that only bullish reversal patterns prior to trend are profitable for investors while most of the bearish reversal patterns have shown significant predictive power both before and after trend. The effective holding period for candlestick reversal patterns tend to accumulate around 10-15 day holding period. EconJournals 2016 E-Article PeerReviewed text en http://ir.unimas.my/id/eprint/18130/7/Candlestick%20Charting%20and%20Trading%20Volume.pdf Chee, Ling Chin and Mohamad, Jais and Sophee Sulong, Balia and Ayoib, Che Ahmad and Azlan, Zainol Abidin (2016) Candlestick Charting and Trading Volume: Evidence from Bursa Malaysia. International Review of Management and Marketing, 6 (s8). pp. 153-165. ISSN 21464405 http://www.econjournals.com
institution Universiti Malaysia Sarawak
building Centre for Academic Information Services (CAIS)
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Malaysia Sarawak
content_source UNIMAS Institutional Repository
url_provider http://ir.unimas.my/
language English
topic H Social Sciences (General)
HG Finance
spellingShingle H Social Sciences (General)
HG Finance
Chee, Ling Chin
Mohamad, Jais
Sophee Sulong, Balia
Ayoib, Che Ahmad
Azlan, Zainol Abidin
Candlestick Charting and Trading Volume: Evidence from Bursa Malaysia
description Technical analysis is deemed to be a futile practice among academicians who propose efficient market hypothesis, typically the weak form market efficiency which strongly protests the application of past prices and trading volume data for prediction of future market movement. As candlestick charting is one of the oldest technical indicators for short term investment, therefore this study examines the predictability of candlestick charting with combination to trading volume for Malaysian stock market within the period of 2000-2014. Skewness adjusted t-test is employed to test the statistical significance of candlestick returns. After taking into account the transaction costs and also out-of-sample test as robustness checking, the findings show that only bullish reversal patterns prior to trend are profitable for investors while most of the bearish reversal patterns have shown significant predictive power both before and after trend. The effective holding period for candlestick reversal patterns tend to accumulate around 10-15 day holding period.
format E-Article
author Chee, Ling Chin
Mohamad, Jais
Sophee Sulong, Balia
Ayoib, Che Ahmad
Azlan, Zainol Abidin
author_facet Chee, Ling Chin
Mohamad, Jais
Sophee Sulong, Balia
Ayoib, Che Ahmad
Azlan, Zainol Abidin
author_sort Chee, Ling Chin
title Candlestick Charting and Trading Volume: Evidence from Bursa Malaysia
title_short Candlestick Charting and Trading Volume: Evidence from Bursa Malaysia
title_full Candlestick Charting and Trading Volume: Evidence from Bursa Malaysia
title_fullStr Candlestick Charting and Trading Volume: Evidence from Bursa Malaysia
title_full_unstemmed Candlestick Charting and Trading Volume: Evidence from Bursa Malaysia
title_sort candlestick charting and trading volume: evidence from bursa malaysia
publisher EconJournals
publishDate 2016
url http://ir.unimas.my/id/eprint/18130/7/Candlestick%20Charting%20and%20Trading%20Volume.pdf
http://ir.unimas.my/id/eprint/18130/
http://www.econjournals.com
_version_ 1644512786576834560
score 13.211869

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