Technical Trading: Is it still beating the foreign exchange market?

Academics from the University of Hong Kong and University of Warwick have carried out a large-scale investigation of technical trading rules in the foreign exchange market, using daily data over 45 years for 30 developed and emerging market currencies.

Employing a stepwise test to counter data-snooping bias and examining over 21,000 technical rules, they found evidence of substantial predictability and excess profitability in both developed and emerging currencies, measured against a variety of performance metrics.

To read the research by the following academics, please click here

Po-Hsuan Hsu
School of Economics and Finance, University of Hong Kong

Mark P. Taylor
Warwick Business School, University of Warwick

Zigan Wang
School of Economics and Finance, University of Hong Kong

 

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The views and opinions expressed on the STA’s blog do not necessarily represent those of the Society of Technical Analysts (the “STA”), or of any officer, director or member of the STA.

The STA makes no representations as to the accuracy, completeness, or reliability of any information on the blog or found by following any link on blog, and none of the STA, STA Administrative Services or any current or past executive board members are liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use.

None of the information on the STA’s blog constitutes investment advice.

About Nicole Elliott

Nicole Elliott

A graduate of the London School of Economics and Political Science (BSc Social Psychology) Nicole Elliott has worked in banks in the City of London for the last 30 years. Whether in sales, trading or forecasting technical analysis has always been the bedrock of her thinking. Key expertise lies within all areas of treasury: foreign exchange, money markets, fixed income and commodities.

She has also added to the body of knowledge of the industry writing the first western book on Ichimoku Cloud Charts. Strong media links and a cult following are due to her prescient calls on the markets and often entertaining format.

Nicole can be contacted at trending@sta-uk.org

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