Title

Market timing: a test of a charting heuristic

Authors

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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