Published Paper Details:

The study is aimed to understand whether the charting patterns (Japanese candlesticks and classical price patterns) work for the charts of smallcap and midcap companies. Also, whether charting patterns can be relied upon as a tool for technical analysis or not. The study takes into account various charting patterns (both, Japanese candlestick patterns and classical price patterns) and sees if they work for these companies as well. Systematic sampling was chosen and companies were categorised on the basis of their market capitalization. Three companies from both, midcap and smallcap categories were considered as the sample of the study. Upon analysis, it was found that the 16 patterns (11 Japanese candlestick patterns and 5 classical price patterns) existed in the sample considered for the purpose of study and those patterns had a success rate of 75% and the number of patterns so found were more in the smallcap companies than the midcap companies. Japanese Candlesticks had a success rate of 72%, whereas the classical price patterns had a success rate of 80%. If the patterns are observed correctly and a person enters (and exits) into trades timely, then he/she can reward himself tremendously with just little work and practice.