Investlinked is doing a candlestick patterns research project. The intention of the project is to develop a service which can help predict stock price trend by leveraging candlestick patterns as well as technical indicators. By using our candlestick pattern recognition engine, we perform daily scan to find stocks with wide range of candlestick patterns on ASX share market. These results can be very valuable because candlestick patterns may potentially imply future stock price’s movement especially when they are analysed with other effective technical indicators such as MACD, RSI and etc.
Candlesticks have their origin in 17th century Japan. Each candlestick on a candlestick chart not only displays high, low, open and close prices but also carries a ton of information about the data and trend of a market. Nowadays candlestick charts are the preferred tool of analysis for traders and many investors because they provide a lot of important information which can be used for stock price’s trend prediction.