Beschreibung
During the last decades, the international financial markets
saw enormous developments. Today, every newspaper offers
advice on investment strategies and analysts seemingly earn
money by drawing magic lines through prices series.
Even though more and more traders rely on technical
analysis, economists remain sceptical. How can the apparent
success of technical trading strategies be reconciled with
efficient market theories?
This book mainly consists of three parts. The first part
critically reviews the empirical literature on technical
analysis and suggests to leave behind profitability
calculations in favor of a systematic approach to analyzing
trading rules, where special attention is given to the
evaluation of the rules‘ forecasts. The second part presents
the results of an empirical analysis that covers 5 exchange
rates series spanning more than 20 years. In the third part,
the theoretical background as well as the implications of a
widespread use of technical analysis are critically
discussed.
The thorough overview presented here lays a foundation for
further discussions of technical analyses and its effects on
markets.
