Document Type

Journal Article

Department/ Unit

Department of Economics

Abstract

This paper focuses on the role of technical analysis in signalling the timing of stock market entry and exit. Test statistics are introduced to test the performance of the most established of the trend followers, the Moving Average, and the most frequently used counter-trend indicator, the Relative Strength Index. Using Singapore data, the results indicate that the indicators can be used to generate significantly positive return. It is found that member firms of Singapore Stock Exchange (SES) tend to enjoy substantial profits by applying technical indicators. This could be the reason why most member firms do have their own trading teams that rely heavily on technical analysis.

Publication Year

2010

Journal Title

Applied Financial Economics

Volume number

13

Issue number

7

Publisher

Taylor & Francis

First Page (page number)

543

Last Page (page number)

551

Referreed

1

DOI

10.1080/0960310022000020906

ISSN (print)

0960-3107

Link to Publisher’s Edition

http://dx.doi.org/10.1080/0960310022000020906

Included in

Economics Commons

Share

COinS