IDEAS home Printed from
   My bibliography  Save this article

Efficiency of Use of Technical Analysis: Evidences from Russian Stock Market


  • Vassiliy Chsherbakov


Technical analysis can be determined as a method of evaluating the statistics, historical data (e.g. past price and volume.) to establish "specific rules for buying and selling securities with the objective of maximizing profits and minimizing risk of loss". The historical overview shows that technical analysis takes its roots in 17 century; by now it is one of the most frequently used methods by traders all over the world. This fact is justified by great number of empirical data from Singapore, Istanbul, New York and other stock exchanges. The main concern of this paper is the focus on the creation, tests of trading systems based on the popular trend following indicator, the moving average, and its combinations. The main questions which would be stressed during this research are: 1. What is the efficiency of the trading systems based on the selected elements of technical analysis? 2. Which of them do show the greatest efficiency rate? Testing of trading systems based on moving average indicator (single, dual and triple) shows relatively high results on the Russian Stock Exchange (MICEX). The comparison analysis indicated that relatively the most efficient trade system is dual moving average trade system; triple moving average trade system gets the 2nd place; and single moving average trade system is regarded as relatively inefficient

Suggested Citation

  • Vassiliy Chsherbakov, 2010. "Efficiency of Use of Technical Analysis: Evidences from Russian Stock Market," Ekonomika a Management, University of Economics, Prague, vol. 2010(4).
  • Handle: RePEc:prg:jnleam:v:2010:y:2010:i:4:id:117

    Download full text from publisher

    File URL:
    Download Restriction: free of charge

    File URL:
    Download Restriction: free of charge

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    1. Fama, Eugene F & French, Kenneth R, 1988. "Permanent and Temporary Components of Stock Prices," Journal of Political Economy, University of Chicago Press, vol. 96(2), pages 246-273, April.
    2. A. Antoniou & N. Ergul & P. Holmes & R. Priestley, 1997. "Technical analysis, trading volume and market efficiency: evidence from an emerging market," Applied Financial Economics, Taylor & Francis Journals, vol. 7(4), pages 361-365.
    3. Wing-Keung Wong & Meher Manzur & Boon-Kiat Chew, 2003. "How rewarding is technical analysis? Evidence from Singapore stock market," Applied Financial Economics, Taylor & Francis Journals, vol. 13(7), pages 543-551.
    4. Zielonka, Piotr, 2004. "Technical analysis as the representation of typical cognitive biases," International Review of Financial Analysis, Elsevier, vol. 13(2), pages 217-225.
    Full references (including those not matched with items on IDEAS)

    More about this item


    Technical analysis; Trading systems efficiency; Moving average;

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:prg:jnleam:v:2010:y:2010:i:4:id:117. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Frantisek Sokolovsky). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.