A note on the weak form efficiency of capital markets: The application of simple technical trading rules to UK stock prices - 1935 to 1994

1996 ◽  
Vol 20 (6) ◽  
pp. 1121-1132 ◽  
Author(s):  
Robert Hudson ◽  
Michael Dempsey ◽  
Kevin Keasey
Keyword(s):  
Capital Markets ◽  
Stock Prices ◽  
Weak Form ◽  
Technical Trading ◽  
Technical Trading Rules ◽  
Trading Rules ◽  
Weak Form Efficiency

scholarly journals The Predictability and profitability of Trading Range Break-out Trading Rules: Evidence from Pakistan Stock Exchange

2021 ◽  
Vol 6 (1) ◽  
pp. 209-215
Author(s):  
Syed Arshad Ali Shah ◽  
Dr.Anwarul Mujahid Shah ◽  
Dr.Saiful Mujahid shah
Keyword(s):  
Stock Exchange ◽  
Abnormal Returns ◽  
Strong Support ◽  
Weak Form ◽  
Efficient Market Hypothesis ◽  
Technical Trading ◽  
Technical Trading Rules ◽  
Trading Rules ◽  
Share Prices ◽  
Academic Literature

The efficient market hypothesis has been one of themost extensively researched topics in the academic literature for decades. An implication ofweak form of efficiency is that the technical trading rules will not produce abnormal returns. The purpose of this research is to analyze findings of application of trading range breakout test on daily closing share prices of 100 companies listed on a Pakistan Stock Exchange over ten years from 2006 to 2015,thus examining its efficiency at the weak form. The results show strong support for trading range break-out rules having both predictability and profitability for PSX. It refers that the returns from these rules are not same as investors earn from a naïve buy and hold strategy. The uses of the trading range break-out rules produce abnormal returns to investors and hence nullify the weak form of efficiency on PSX.

EMERGENT CAPITAL MARKETS’ EFFICIENCY: THE CASE OF POLAND

2014 ◽  
Vol 8 (1) ◽  
pp. 27-41 ◽  
Author(s):  
Massoud Metghalchi ◽  
Adriano Pinho ◽  
Adriana Sarmento
Keyword(s):  
Transaction Costs ◽  
Capital Markets ◽  
Predictive Power ◽  
Technical Analysis ◽  
Entire Period ◽  
Stock Index ◽  
Technical Trading ◽  
Technical Trading Rules ◽  
Trading Rules ◽  
Technical Indicators

We apply two well-known technical indicators to the Polish Stock index over the period of 9/4/1998 to 4/18/2013. Our findings support the predictive power of technical trading rules for each sub-period and for the entire period. We then ask whether an investor can use the predictive power of technical analysis to beat the profitability of the buy-and-hold strategy considering both transaction costs and risk. We conclude that it is not possible to beat the buy and hold strategy when considering transaction costs and risk. We could say the Polish market is efficient. 

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