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How rewarding is technical analysis? Evidence from Athens Stock Exchange

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Abstract

The purpose of this paper is to investigate the performance of various technical trading rules in the Athens Stock Market. We test two of the simplest and most popular trading rules- Moving Averages and MACD Indicator. We evaluate how these simple forms of technical analysis can predict stock price movements in the Athens Stock Exchange. This study will investigate these effects for the most important index of the Athens market, the Athens General Index. Our study covers the period from 1/1/1990 to 31/12/2004. The methodologies employed include standard tests and bootstrap. Overall, our results provide strong support for the examined technical strategies.

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Authors and Affiliations

  1. Hellenic Open University, 16 Sahtouri Street & Ag. Andreou Street, GR - 262 22, Patra, Greece

    Dimitrios Vasiliou & Spyros Papathanasiou

  2. National and Kapodistrian University of Athens, 5 Stadiou Street, GR - 105 62, Athens, Greece

    Nikolaos Eriotis

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  1. Dimitrios Vasiliou
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  2. Nikolaos Eriotis
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  3. Spyros Papathanasiou
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Vasiliou, D., Eriotis, N. & Papathanasiou, S. How rewarding is technical analysis? Evidence from Athens Stock Exchange. Oper Res Int J 6, 85–102 (2006). https://doi.org/10.1007/BF02941226

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