Indonesian Journal of Law and Economics Review
Vol. 21 No. 1 (2026): February

Technical Analysis of Stock Prices Using Japanese Candlestick Method

Abbas abdullah Aljanabi, Haider (Unknown)



Article Info

Publish Date
27 Dec 2025

Abstract

General Background: Technical analysis provides investors with systematic methodologies for understanding financial market dynamics through chart-based price movement examination. Specific Background: The Japanese candlestick method, originating from 17th century rice trading in Japan, visualizes market psychology through four-coordinate price data representing opening, closing, highest, and lowest values within defined timeframes. Knowledge Gap: Practical application and reliability validation of candlestick patterns in predicting stock price movements across varying market conditions remain insufficiently explored. Aims: This analytical research evaluates Japanese candlestick methodology effectiveness in technical analysis for stock pricing accuracy, examining single and multiple candle patterns to identify trends and reversals. Results: Candlestick patterns demonstrate 79.4% accuracy in predicting price directions, though requiring specialized expertise for proper implementation. Novelty: This study systematically examines pattern effectiveness integrating volume analysis and market contextual factors. Implications: Enhanced investor education through specialized training programs is essential for effectively leveraging Japanese candlestick analysis to optimize stock market investment returns.Keywords : Technical Analysis, Japanese Candlestick, Stock Price Prediction, Candlestick Patterns, Financial Market TrendsHighlight : Candlestick patterns achieve 79.4% accuracy in predicting stock price direction movements. Method demands specialized expertise due to complexity requiring extreme caution in application. Reversal patterns combined with volume analysis provide optimal trading entry-exit points.

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Journal Info

Abbrev

ijler

Publisher

Subject

Economics, Econometrics & Finance Law, Crime, Criminology & Criminal Justice

Description

Indonesian Journal of Law and Economics Review (IJLER) is published by Universitas Muhammadiyah Sidoarjo four times a year. This journal provides immediate open access to its content on the principle that making research freely available to the public supports a greater global exchange of ...