Candlestick Technical Analysis on Select Indian Stocks: Pattern detection and Efficiency Statistics
Manoharan. M1, Rajesh Mamilla2

1Manoharan. M, Department of Technology Management, Vellore Institute of Technology, Vellore, India.
2Dr Rajesh Mamilla*,VIT Business School, Vellore Institute of Technology, Vellore, India.

Manuscript received on November 14, 2019. | Revised Manuscript received on 21 November, 2019. | Manuscript published on December 10, 2019. | PP: 3140-3143 | Volume-9 Issue-2, December 2019. | Retrieval Number: B7666129219/2019©BEIESP | DOI: 10.35940/ijitee.B7666.129219
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Abstract: Financial markets generate vast data every trading day. There are markets for equity shares, commodities, fixed income securities and currencies etc. Further, we do have organised markets for financial ddderivatives. The exponential growth of financial markets isthe order of the modern-day. Developments in information and communication technology (ICT) helped the growth of financial markets and its operations to greater heights. One of the financial market analysis is Candlestick Technical analysis also is known as Japanese candlestick charting. It is the oldest form of financial market analysis originated in japan. This study measured the occurrence and tested the efficiency of various bullish reversal candlestick patterns on 17 stocks of India’s leading stock market benchmark index NIFTY 50 for the period of 16 years from 2000 to 2015.Data mining with backtesting methodology is used to find the top 10 candlestick patterns with respect to the frequency of occurrence during the study period. The efficiency profitability is analysed using Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) method , a multi-criteria decision making (MCDM) method on the backtested results for the 5-day holding period.The results of the study show that hammer (HMR), long engulfing pattern (LEB) and Rising window (RSW) are the top three ranked candlestick patterns. 
Keywords:  Technical Analysis, Candlesticks, TOPSIS and Indian Stocks.
Scope of the Article:  Pattern Recognition and Analysis