Using two sets of data, including daily prices (open, close, high and low) of all S&P 500 stocks between 1992 and 1996, we perform a satistical test of the predictive capability of candlestick patterns. Out-of-sample tests indicate statistical signicance at the level of 36 standard deviations from the null hypothesis, and indicate a prot of almost 1% during a two-day holding period. An essent...