Research on the predictive power of technical analysis is a matter of controversy. The objective of this thesis is to look at the empirical research done on technical trading and see how the results can be used from a trader’s perspective. Some results provide strong support for the technical trading and propose useful trading strategies. However, there are some limitations regarding transaction costs, risk adjustment, and statistical tests. Technical research has developed new methodology approaches and new trading rules. Technical analysis strategies alone provide incomplete background for modern trading. By integrating technical, fundamental, and psychological analysis into an investment or trading approach, one can handle increasingly complex contemporary markets
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