What Do We Know About the Profitability of Technical Analysis?

  title={What Do We Know About the Profitability of Technical Analysis?},
  author={Scott H. Irwin and Cheolbeom Park},
  journal={Wiley-Blackwell: Journal of Economic Surveys},
The purpose of this paper is to review the evidence on the profitability of technical analysis. The empirical literature is categorized into two groups, 'early' and 'modern' studies, according to the characteristics of testing procedures. Early studies indicate that technical trading strategies are profitable in foreign exchange markets and futures markets, but not in stock markets. Modern studies indicate that technical trading strategies consistently generate economic profits in a variety of… 

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