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Extended evidence on the use of technical analysis in foreign exchange

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  • Thomas Gehrig
  • Lukas Menkhoff

    (University of Hannover, Germany)

Abstract

This work extends earlier survey studies on the use of technical analysis by considering flow analysis as a third form of information production. Moreover, the survey covers FX dealers and also the rising fund managers. Technical analysis has gained importance over time and is now the most equally spread kind of analysis. It has by far the greatest importance in FX dealing and is second in fund management. Charts are used for shorter-term forecasting horizons while flows dominate at the shortest-term and fundamentals at longer horizons. Preferred users of each kind of analysis exhibit different views about market frictions. Copyright © 2006 John Wiley & Sons, Ltd.

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Bibliographic Info

Article provided by John Wiley & Sons, Ltd. in its journal International Journal of Finance & Economics.

Volume (Year): 11 (2006)
Issue (Month): 4 ()
Pages: 327-338

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Handle: RePEc:ijf:ijfiec:v:11:y:2006:i:4:p:327-338

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