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Representation of Japanese Candlesticks by Oriented Fuzzy Numbers

Author

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  • Krzysztof Piasecki

    (Department of Investment and Real Estate, Poznań University of Economics and Business, 61-875 Poznań, Poland)

  • Anna Łyczkowska-Hanćkowiak

    (Institute of Finance, WSB University in Poznań, 61-895 Poznań, Poland)

Abstract

The Japanese candlesticks’ technique is one of the well-known graphic methods of dynamic analysis of securities. If we apply Japanese candlesticks for the analysis of high-frequency financial data, then we need a numerical representation of any Japanese candlestick. Kacprzak et al. have proposed to represent Japanese candlesticks by ordered fuzzy numbers introduced by Kosiński and his cooperators. For some formal reasons, Kosiński’s theory of ordered fuzzy numbers has been revised. The main goal of our paper is to propose a universal method of representation of Japanese candlesticks by revised ordered fuzzy numbers. The discussion also justifies the need for such revision of a numerical model of the Japanese candlesticks. There are considered the following main kinds of Japanese candlestick: White Candle (White Spinning), Black Candle (Black Spinning), Doji Star, Dragonfly Doji, Gravestone Doji, and Four Price Doji. For example, we apply numerical model of Japanese candlesticks for financial portfolio analysis.

Suggested Citation

  • Krzysztof Piasecki & Anna Łyczkowska-Hanćkowiak, 2019. "Representation of Japanese Candlesticks by Oriented Fuzzy Numbers," Econometrics, MDPI, vol. 8(1), pages 1-24, December.
    • Handle: RePEc:gam:jecnmx:v:8:y:2019:i:1:p:1-:d:299330
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    References listed on IDEAS

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    1. Lu, Tsung-Hsun & Chen, Yi-Chi & Hsu, Yu-Chin, 2015. "Trend definition or holding strategy: What determines the profitability of candlestick charting?," Journal of Banking & Finance, Elsevier, vol. 61(C), pages 172-183.
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    6. Krzysztof Piasecki, 2012. "The basis of financial arithmetic from the viewpoint of utility theory," Operations Research and Decisions, Wroclaw University of Science and Technology, Faculty of Management, vol. 22(3), pages 37-53.
    7. Anna Łyczkowska-Hanćkowiak & Krzysztof Piasecki, 2018. "The present value of a portfolio of assets with present values determined by trapezoidal ordered fuzzy numbers," Operations Research and Decisions, Wroclaw University of Science and Technology, Faculty of Management, vol. 28(2), pages 41-56.
    8. Yong Fang & Kin Keung Lai & Shouyang Wang, 2008. "Fuzzy Portfolio Optimization," Lecture Notes in Economics and Mathematical Systems, Springer, number 978-3-540-77926-1, October.
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    1. Anna Łyczkowska-Hanćkowiak & Krzysztof Piasecki, 2018. "The present value of a portfolio of assets with present values determined by trapezoidal ordered fuzzy numbers," Operations Research and Decisions, Wroclaw University of Science and Technology, Faculty of Management, vol. 28(2), pages 41-56.
    2. Anna Łyczkowska-Hanćkowiak & Aleksandra Wójcicka-Wójtowicz, 2023. "On portfolio analysis using oriented fuzzy numbers for the trade-related sector of the Warsaw Stock Exchange," Operations Research and Decisions, Wroclaw University of Science and Technology, Faculty of Management, vol. 33(4), pages 155-170.
    3. Anna Łyczkowska-Hanćkowiak, 2019. "Sharpe’s Ratio for Oriented Fuzzy Discount Factor," Mathematics, MDPI, vol. 7(3), pages 1-16, March.
    4. Krzysztof Piasecki & Anna Łyczkowska-Hanćkowiak, 2021. "Oriented Fuzzy Numbers vs. Fuzzy Numbers," Mathematics, MDPI, vol. 9(5), pages 1-27, March.

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