Computer Science & Mathematical Sciences Colloquium Series 2021-2022
Wednesday, November 10, 2021 at 3:00 pm in RB 104
Title: Forecasting Future Stock Prices Using Japanese Candlesticks: An Interdisciplinary Approach
Presented by:
Dr. Adrian Heinz, Professor of Information Technology
Dr. Mohamed Jamaloodeen, Professor of Mathematics
School of Science and Technology. Georgia Gwinnett College
Abstract: Technical Analysis is the study of past prices to forecast future prices of a specific security including stocks, stocks indexes, Exchange Traded Funds (ETFs), commodities, etc. Technical analysts rely on the use of charts to plot price fluctuations over a specific period of time. There are several types of charts including line, area, bar, and Japanese Candlesticks. This last type was conceived in Japan over 200 years ago. It was originally used to predict price variations of rice. Each candlestick is composed of a body and shadows, which are based on Open, High, Low and Close prices of a specific period of time. When plot on a chart, the candlesticks form patterns believed to forecast trend reversals or continuations. Although Japanese Candlesticks enjoy great popularity among investment professionals, the literature generally provides little statistical evidence of their effectiveness. In this talk, we present an overview of our ongoing interdisciplinary research work on Japanese Candlesticks. We show how programming combined with statistics are used to analyze financial data, specifically the forecasting power of Japanese Candlesticks. We will discuss our process, current results as well as future work.
Light refreshments will be served after in RB 460