Authors: Tsung-Hsun Lu
Addresses: Department of Business Administration, CTBC Financial Management College, No. 600 Sec. 3 Taijiang Blvd., Annan District, Tainan 709, Taiwan
Abstract: This study proposes a different way to implement candlestick trading rules. Applying profit targets to the PHLX semiconductor sector index (SOX) component stocks from 1992 to 2016, the author found two 3-day candlestick patterns can earn over 1% profit, after considering transaction costs and the data-snooping problem. This profit target approach thus provides an alternative way for investors to decide on which day to exit the market.
Keywords: candlestick charting; profit target; SOX component stocks.
International Journal of Revenue Management, 2018 Vol.10 No.3/4, pp.216 - 226
Received: 18 Mar 2017
Accepted: 30 Apr 2017
Published online: 22 Nov 2018 *