What Do We Know About the Profitability of Technical Analysis?

@article{Irwin2007WhatDW,
  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},
  year={2007}
}
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… 

Statistical testing of technical trading rule profitability

Faculty of Business and Economics DEPARTMENT OF ECONOMICS Doctor of Philosophy Statistical Testing of Technical Trading Rule Profitability by Jung-Soo PARK The profitability of technical trading

Profits from technical analysis: an empirical evidence of precious metal markets

The main objective of this study is to investigate the validity and predictability of technical analysis in precious metal markets. This study applies the bootstrap tests of White (2000) and Hansen

Examination of the profitability of technical analysis based on moving average strategies in BRICS

In this paper, we investigated the profitability of technical analysis as applied to the stock markets of the BRICS member nations. In addition, we searched for evidence that technical analysis and

On the profitability of technical trading

The sole use of price and related summary statistics in a technical trading strategy is an anathema to weak-form market efficiency. In practice, however, traders actively use technical analysis to

Technical Analysis in the Foreign Exchange Market

This article introduces the subject of technical analysis in the foreign exchange market, with emphasis on its importance for questions of market efficiency. “Technicians” view their craft, the study

An Empirical Analysis of the Profitability of Technical Analysis Across Global Markets - The Case of Equities, Commodities and Foreign Exchange Rates

Four technical indicators are tested on 14 return-series, covering the years 2000 – 2016 and representing 3 different asset types: equity, commodity and currency, with a further division of equity

Technical Analysis: Does Recent Market Data Substantiate the Efficient Market Hypothesis?

Currently, there is a controversy regarding fundamental predictability of the market, which has created a gap in understanding the fundamental principles of market performance. The problem this study

Economic benefits of technical analysis in portfolio management: Evidence from global stock markets

Producing good economic value in trading strategies for investors based on technical analysis is an issue of major interest in the academe and in practice. This study considers 9,555 trading rules

Technical Analysis as Valuable Investment Tool?: Evidence From Daily DAX Forecasts

This paper addresses the role of technical analysis as potential investment tool for individual retail investors by analysing 2,165 daily forecasts on the DAX between 2015 and 2016. My results

The Role of Technical Analysis in Retail Investor Trading

Technical Analysis (TA) is a security analysis methodology based on the study of past market data. Although it has been criticized by academics and the profitability of many related strategies has
...

References

SHOWING 1-10 OF 194 REFERENCES

The Profitability of Technical Analysis: A Review

The purpose of this report is to review the evidence on the profitability of technical analysis. To achieve this purpose, the report comprehensively reviews survey, theoretical and empirical studies

Technical Trading Rules: A Comment

THE REAL VALUE of technical analysis in predicting stock prices continues to be a topic of heated controversy in the financial community.' On one side of the issue are those who maintain that a

The use of technical analysis in the foreign exchange market

A Comprehensive Test of Futures Market Disequilibrium

Whether or not trading with technical analysis is profitable is a controversial topic. This study seeks to add to our knowledge about this controversy by providing a comprehensive test of the

Random Walks and Technical Theories: Some Additional Evidence

Studies of the profitability of various "filter" trading rules based only on the past price series which purportedly capture the essential characteristics of many technical theories indicate the " filter" rules do not yield profits net of transactions costs which are higher than those earned by a simple buy-and-hold strategy.
...