English

Efficient Markets, Behavioral Finance and a Statistical Evidence of the Validity of Technical Analysis

General Finance 2013-02-07 v1 Pricing of Securities

Abstract

This work tried to detect the existence of a relationship between the graphic signals - or patterns - observed day by day in the Brazilian stock market and the trends which happen after these signals, within a period of 8 years, for a number of securities. The results obtained from this study show evidence of the existence of such a relationship, suggesting the validity of the Technical Analysis as an instrument to predict the trend of security prices in the Brazilian stock market within that period.

Keywords

Cite

@article{arxiv.1302.1228,
  title  = {Efficient Markets, Behavioral Finance and a Statistical Evidence of the Validity of Technical Analysis},
  author = {Marco Antonio Penteado},
  journal= {arXiv preprint arXiv:1302.1228},
  year   = {2013}
}

Comments

20 pages; Keywords: Efficient Markets, Behavioral Finance, Technical Analysis