NexusFi: Find Your Edge


Home Menu

 





Worthwhile Candlestick Trading Academic Paper


Discussion in Traders Hideout

Updated
    1. trending_up 4,760 views
    2. thumb_up 2 thanks given
    3. group 2 followers
    1. forum 2 posts
    2. attach_file 0 attachments




 
Search this Thread
  #1 (permalink)
 
serac's Avatar
 serac 
Arizona, USA
 
Experience: Intermediate
Platform: NinjaTrader
Broker: MB Trading
Trading: Cello
Posts: 116 since Jan 2011
Thanks Given: 321
Thanks Received: 138

No, this isn't another academic paper arguing for the Efficient Market Hypothesis. This paper is actually interesting and useful.

The authors took well-known candlestick patterns and performed a statistical test on out-of-sample S&P 500 data to quantify the efficiency of patterns in determining when the market turned.

Interestingly, they found that the candlestick patterns worked extremely well, with a statistical significance of 36 standard deviations. [A 36 sigma significance means they are dead sure of their conclusion.]

A worthwhile read. I have only read the introduction and discussion, and scanned the rest.

https://www.pitt.edu/~caginalp/Paper65.pdf

I am in no way connected to the authors of this paper.


Started this thread Reply With Quote
Thanked by:

Can you help answer these questions
from other members on NexusFi?
Czechia Live at 52.5% as England Rides 4-2 Wave to Co-Fa …
Prediction Markets & Event Contracts
MultiCharts to MetaTrader 5 -Bridge - TradeCopier - orde …
MultiCharts
Without Pulisic, USA 61.5% Live vs. Australia -- France …
Prediction Markets & Event Contracts
Daytrading to swingtrading
Traders Hideout
Warsh Drops Easing Bias, December Hike Now Above 50% -- …
Prediction Markets & Event Contracts
 
Best Threads (Most Thanked)
in the last 7 days on NexusFi
Want your NinjaTrader indicator created, free?
5 thanks
Denied 20K payouts: Alpha Futures
1 thanks
FootPrintV2 Chart for NT8
1 thanks
BERN ALGOS algo trading journal
1 thanks
Afternoon-close session
1 thanks
  #3 (permalink)
 vecchp 
Los Angeles, CA
 
Experience: Beginner
Platform: MultiCharts
Trading: EUR/USD, ES
Posts: 28 since Sep 2011
Thanks Given: 10
Thanks Received: 10


Good find. I skimmed through it and will probably go back for a more in depth read later. One thing that I find very interesting is that they essentially automated a few patterns to perform this study.


Visit my NexusFi Trade Journal Reply With Quote
Thanked by:




Last Updated on February 4, 2012


© 2026 NexusFi®, s.a., All Rights Reserved.
Av Ricardo J. Alfaro, Century Tower, Panama City, Panama, Ph: +507 833-9432 (Panama and Intl), +1 888-312-3001 (USA and Canada)
All information is for educational use only and is not investment advice. There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
About Us - Contact Us - Site Rules, Acceptable Use, and Terms and Conditions - Downloads - Top
no new posts