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. It
provides an empirical evaluation of candlestick forecasting. The book
proposes a novel technique to obtain the statistical properties of
candlestick charts. The technique, which is known as the range
decomposition technique, shows how security price is approximately
logged into two ranges, i.e. technical range and Parkinson range.
Through decomposition-based modeling techniques and empirical datasets,
the book investigates the power of, and establishes the statistical
foundation of, candlestick forecasting.