Do Implicit Phenomena Matter? Evidence from China Stock Index Futures

Navigating Energy and Financial Markets: A Review of Technical Analysis Used and Further Investigation from Various Perspectives

“…As per intraday data, we state that trading index futures such as stock index futures and energy and financial index futures, daily trading might be widely adopted by many investors and speculators due to the high-leverage characteristics of index futures, as such, different intraday rising (falling) significant index changes in one minute (e.g., rising 25, 50, 75 index changes in one minute) might be regarded as trading signals, since we state that rising significant index change in a short time might result from those who have market forces or unleased news [189]. In addition, we argue that we may treat index futures rising (falling) implicitly (e.g., rising (falling) in every minute and less than 2.5, 5, 7.5, and 10 points in five minutes) as trading signals since such movement, defined as an implicit rising (falling) phenomena, might contain hidden information, given that we state that the implicit phenomena might be an indication of manipulation by some professional investors and even insiders [190]. Both studies, using intraday index future data, show that investors may exploit profits in several cases.…”