Market timing: a test of a charting heuristic

    Authors

    W. Leigh; N. Paz;R. Purvis

    Comments

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    Abbreviated Journal Title

    Econ. Lett.

    Keywords

    technical trading; security markets; TRADING RULES; PROFITABILITY; STRATEGIES; Economics

    Abstract

    We implement a graphical (or 'charting') heuristic, the 'bull flag', which accepts a particular pattern of historical prices as a signal for a future market price increase, test it with several years of New York Stock Exchange Composite Index history, and find positive results. The results support the validity of technical analysis for stock market price prediction and fail to confirm the efficient markets hypothesis. (C) 2002 Elsevier Science B.V. All rights reserved.

    Journal Title

    Economics Letters

    Volume

    77

    Issue/Number

    1

    Publication Date

    1-1-2002

    Document Type

    Article

    Language

    English

    First Page

    55

    Last Page

    63

    WOS Identifier

    WOS:000178015900009

    ISSN

    0165-1765

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