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Estimating the portion of technical analysts in a market

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  • Jonathan Cook

Abstract

This article presents structural estimates of the portion of technical analysts in six markets. I find that the portion of technical analysts in the U.S. equity market has been decreasing since the 1970s. A simple asset pricing model predicts that both risk and return are increasing in the portion of technical analysts. This prediction is confirmed across stock market indexes for six countries.

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  • Jonathan Cook, 2017. "Estimating the portion of technical analysts in a market," Applied Economics, Taylor & Francis Journals, vol. 49(41), pages 4127-4137, September.
    • Handle: RePEc:taf:applec:v:49:y:2017:i:41:p:4127-4137
    DOI: 10.1080/00036846.2016.1276274
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    References listed on IDEAS

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