Synergistic Market Analysis, Technical Analysis, and Various Indicators

Most of the stock and financial market analysis uses past or historic data in order to forecast the future market indices. This study of past or historic data in order to infer certain value addition from it is known as technical analysis. In this chapter, the authors study a large number of popular indicators. A trader uses these indicators individually or in combination with other indicators to make a trading rule. They test them on past data and choose particular parameters and indicators that gave more profit and drop those that are loss making in nature. Thus, the decision to make entry and exit is given by these technical indicators. This chapter gives a detailed explanation of the most popular technical indicators in use.

Candlestick Technical Analysis on Select Indian Stocks: Pattern detection and Efficiency Statistics

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.

Behavior of financial markets efficiency during the financial market crisis: 2007 – 2009

This paper examines the behavior of financial markets efficiency during the recent financial market crisis. Using the Hurst exponent as a criterion of market efficiency we show that level of market efficiency is different for pre-crisis and crisis periods. We also classify financial markets of different countries by the level of their efficiency and reaffirm that financial markets of developed countries are more efficient than the developing ones. Based on Ukrainian financial market analysis we show the reasons of inefficiency of financial markets and provide some recommendations on their solution and thus improving the efficiency.