Profitability of Candlestick Charting Patterns in the Stock Exchange of Thailand

What is it about?

This paper investigates the profitability of candlestick bullish and bearish reversal patterns when applied to component stocks of the SET50 index for the ten-year period from July 3, 2006 to June 30, 2016. The holding periods are one day, three days, five days, and ten days. The statistical analysis finds little use of both bullish and bearish candlestick reversal patterns and indicate that candlestick patterns cannot reliably predict market directions. In addition, this paper finds that filtering generally does not increase profitability nor prediction accuracy of candlestick patterns.

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