Technical trading rules for nonlinear dynamics of stock returns: evidence from the G-7 stock markets

2010 ◽  
Vol 36 (3) ◽  
pp. 323-353 ◽  
Author(s):  
Kwang-il Choe ◽  
Joshua Krausz ◽  
Kiseok Nam
Keyword(s):  
Nonlinear Dynamics ◽  
Stock Returns ◽  
Stock Markets ◽  
Technical Trading ◽  
Technical Trading Rules ◽  
Trading Rules

scholarly journals Technical Trading Rules in Emerging Stock Markets

2012 ◽  
Author(s):  
Dries Heyman ◽  
Koen Inghelbrecht ◽  
Stefaan Paul Pauwels
Keyword(s):  
Stock Markets ◽  
Technical Trading ◽  
Technical Trading Rules ◽  
Trading Rules ◽  
Emerging Stock Markets

scholarly journals Profitability of the Moving Averages Technical Trading Rules in an Emerging Stock Market: A Study of Stocks Listed in Pakistan Stock Exchange

2020 ◽  
Vol 12 (2) ◽  
pp. 165-176
Author(s):  
Muhammad Arif ◽  
Abdul Rauf Laghari ◽  
Avinash Advani
Keyword(s):  
Stock Returns ◽  
Stock Exchange ◽  
Moving Average ◽  
Predictive Ability ◽  
Moving Averages ◽  
Technical Trading ◽  
Technical Trading Rules ◽  
Trading Rules ◽  
Future Studies ◽  
Portfolio Returns

This study examines the profitability of Moving Averages (MA) timing strategy over the buy and hold strategy for individual stocks listed at Pakistan Stock Exchange (PSX). We applied Han, Yang, and Zhou (2013), methodology to individual stock returns and found inconclusive evidence of MA timing strategy’s predictive ability to earn higher returns over buy and hold strategy. We also report market risk-adjusted returns to remove any market movement effects and apply alternative moving averages lag lengths to check the robustness of our results. We observe individual stock returns are noisier than portfolio returns and the simple technical trading rule of moving average lack the ability to predict individual stock returns. We propose the use of more complex trading rules in future studies to ascertain the profitability of technical trading rules in individual stocks.

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