Japanese Candlestick Trading Strategies: A Review of Literature

The purpose of this study is to review the evidence on the performance of Japanese candlestick trading strategies. To achieve this, the study comprehensively reviews survey, theoretical and empirical studies on the subject of candlestick trading strategies and discusses the consistency and reliability of candlestick trading across markets and over time. The majority of the studies were collected from academic journals published from 1998 to the present and recent working papers, books and magazines. The reviews are arranged under two sections, first section contains review of studies that state candlestick trading rules are not profitable and second section contains review of studies that state candlestick trading rules are profitable.