A Study on the Effectiveness of Charting Techniques for Predicting Stock Market Trends

A Study on the Effectiveness of Charting Techniques for Predicting Stock Market Trends

Vedika S. Gedam

Research student

MBA
Department of Business Administration and Management
Sant Gadge Baba Amravati University, Amravati
Academic Year: 2025–26

Abstract

The Indian Information Technology (IT) sector has emerged as one of the most dynamic and influential industries in the global market, contributing significantly to India’s GDP and employment generation. This research paper aims to study the effectiveness of various charting techniques — including bar charts, area charts, candlestick patterns, and Heikin Ashi patterns — in predicting stock market trends. By employing a combination of quantitative techniques and technical chart analysis, this study provides a comprehensive understanding of stock performance and market behavior over a defined period. The research highlights the predictive potential of these charting methods, their accuracy in identifying market reversals, and the overall implications for investment decisions. Key findings indicate that while individual charting techniques vary in precision, a combined approach enhances predictive reliability. This study contributes to existing literature by evaluating the practical effectiveness of charting techniques, offering valuable insights for investors, analysts, and academicians.

Keywords

·          Charting Techniques

·          Stock Market Prediction

·          Technical Analysis

·          Candlestick Patterns

·          Heikin Ashi Patterns

·          Investor Insights