Candlestick charts are often used in speculative markets to describe and forecast asset price movements. This book is the first of its kind to investigate candlestick charts and their statistical properties.

PART I INTRODUCTION AND OUTLINE 1. Introduction 1.1 Technical analysis before the 1970s 1.2 Technical analysis during 1990s–2000s 1.3 Recent advances in technical analysis 1.4 Summary 2. Outline of this book PART II CANDLESTICK 3. Basic concepts 4. Statistical properties 4.1 Propositions 4.2 Simulations 4.3 Empirical evidence 4.4 Summary PART III STATISTICAL MODELS 5. DVAR model 5.1 The model 5.2 Statistical foundation 5.3 Simulations 5.4 Empirical results 5.5 Summary 6. Shadows in DVAR 6.1 Simulations 6.2 Theoretical explanation 6.3 Empirical evidence 6.4 Summary PART IV APPLICATIONS 7. Market volatility timing 7.1 Introduction 7.2 GARCH@CARR model 7.3 Economic value of volatility timing 7.4 Empirical results 7.5 Summary 8. Technical range forecasting 8.1 Introduction 8.2 Econometric methods 8.3 An empirical study 8.4 Summary 9. Technical range spillover 9.1 Introduction 9.2 Econometric method 9.3 An empirical study: DAX and CAC40 9.4 Summary 10. Stock return forecasting: U.S. S&P500 10.1 Introduction 10.2 Econometric methods 10.3 Statistical evidence 10.4 Economic evidence 10.5 More details 10.6 Summary 11. Oil price forecasting: WTI Crude Oil 11.1 Introduction 11.2 Econometric method 11.3 Empirical results 11.4 Summary PART V CONCLUSIONS AND FUTURE STUDIES 12. Main conclusions 13. Future studies