The purpose of this study is to examine the predictive power of candlestick charting by using the daily data for the Taiwan stocks for the period from 4 January 1992 to 31 December 2009. The main contribution of this paper is devising a four-price-level approach to categorize the single-line...

Unlike the U.S. and most developed countries, Taiwan stock market has been widely documented to have no value premium. Prior studies on the value premium typically adopt a conventional approach proposed by Fama and French (1992), which suggests a buy-and-hold strategy with annual rebalancing. We...