B) The puzzle of technical analysis
1) Technical analysis is the use of past prices to guide trading
decisions.
2) For about 15 years, people have been finding that technical trading rules make excess returns in the foreign exchange market. (Sweeney, 1986; 1988)
2) For about 15 years, people have been finding that technical trading rules make excess returns in the foreign exchange market. (Sweeney, 1986; 1988)
(a) Moving average rules and filter rules.
3) The success of technical trading rules seems to contradict the efficient markets
hypothesis.| Previous slide | Next slide | Back to first slide | View graphic version | Return to Chris Neely's Homepage |