@article{(Open Science Index):https://publications.waset.org/pdf/2661,
	  title     = {Technical Trading Rules in Emerging Stock Markets},
	  author    = {Stefaan Pauwels and  Koen Inghelbrecht and  Dries Heyman and  Pieter Marius},
	  country	= {},
	  institution	= {},
	  abstract     = {Literature reveals that many investors rely on technical trading rules when making investment decisions. If stock markets are efficient, one cannot achieve superior results by using these trading rules. However, if market inefficiencies are present, profitable opportunities may arise. The aim of this study is to investigate the effectiveness of technical trading rules in 34 emerging stock markets. The performance of the rules is evaluated by utilizing White-s Reality Check and the Superior Predictive Ability test of Hansen, along with an adjustment for transaction costs. These tests are able to evaluate whether the best model performs better than a buy-and-hold benchmark. Further, they provide an answer to data snooping problems, which is essential to obtain unbiased outcomes. Based on our results we conclude that technical trading rules are not able to outperform a naïve buy-and-hold benchmark on a consistent basis. However, we do find significant trading rule profits in 4 of the 34 investigated markets. We also present evidence that technical analysis is more profitable in crisis situations. Nevertheless, this result is relatively weak.
},
	    journal   = {International Journal of Economics and Management Engineering},
	  volume    = {5},
	  number    = {11},
	  year      = {2011},
	  pages     = {1731 - 1754},
	  ee        = {https://publications.waset.org/pdf/2661},
	  url   	= {https://publications.waset.org/vol/59},
	  bibsource = {https://publications.waset.org/},
	  issn  	= {eISSN: 1307-6892},
	  publisher = {World Academy of Science, Engineering and Technology},
	  index 	= {Open Science Index 59, 2011},
	}