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Examining the Use of Technical Currency Analysis

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Menkhoff, Lukas

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Abstract

Although the use of technical analysis in foreign exchange markets is well known, enduring and possibly profitably used, it is not well understood. In this paper implications of the efficient market hypothesis for the use of technical currency analysis are examined by an evaluation of the response to a postal questionnaire by foreign exchange professionals in Germany. The results indicate that technical currency analysis should be interpreted not as either a marginal phenomenon or representing secondary information or a self-eliminating or second-best strategy, but possibly as a kind of self-fulfilling prophecy. Copyright @ 1997 by John Wiley & Sons, Ltd. All rights reserved.

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

Volume (Year): 2 (1997)
Issue (Month): 4 (October)
Pages: 307-18
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Handle: RePEc:ijf:ijfiec:v:2:y:1997:i:4:p:307-18

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This page was last updated on 2009-11-13.


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