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Market Efficiency and the Returns to Technical Analysis

Author

Listed:
  • Hendrik Bessembinder
  • Kalok Chan

Abstract

Can technical analysis be used to forecast price changes in fianncial markets> Until 1992, that question was answered with a resounding "no." This paper presents additional empirical evidence that simple technical rules do possess statistically different forecast power. However, the returns do not appear large enough to outweigh the trading costs involved.

Suggested Citation

  • Hendrik Bessembinder & Kalok Chan, 1998. "Market Efficiency and the Returns to Technical Analysis," Financial Management, Financial Management Association, vol. 27(2), Summer.
    • Handle: RePEc:fma:fmanag:bessembinder98
    as

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    References listed on IDEAS

    as
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