Evaluating Profitability of Shooting Star Candlestick Pattern in Indian Stock Market
Sidharath Seth1, Jaspal Singh2
1Dr. Sidharath Seth, University School of Financial Studies, Guru Nanak Dev University, Amritsar, Punjab, India.
2Dr. Jaspal Singh, University School of Financial Studies, Guru Nanak Dev University, Amritsar, Punjab, India.
Manuscript received on 08 March 2019 | Revised Manuscript received on 16March 2019 | Manuscript published on 30 July 2019 | PP: 5412-5417 | Volume-8 Issue-2, July 2019 | Retrieval Number: B3483078219/19©BEIESP | DOI: 10.35940/ijrte.B3483.078219
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: This paper investigates the profitability of a candlestick reversal pattern ‘Shooting Star’ in Indian stock market. Its profitability is investigated by using daily data of Nifty 50 component stocks over the period from January 1, 2000 till December 31, 2017. Seven different trading strategies based on shooting star are tested using bootstrapped skewness adjusted t-test and binomial test. The superior performance of three trading strategies for one- and two-day holding periods demonstrates that it can be used to generate profits in Indian stock market. It is recommended that one should trade shooting stars of significantly smaller size and exit short positions within two days.
Index Terms: Technical Analysis, Shooting Star, Candlestick patterns, Indian Stock Market.
Scope of the Article: Pattern Recognition