Is technical analysis profitable on a stock market which has characteristics that suggest it may be inefficient?

Market efficiency and technical analysis during different market phases: further evidence from Malaysia

“…Second, the Malaysian stock market appears to become more efficient in recent times and this is consistent with the findings by Loh (2005) and Marshall and Cahan (2005) in other markets. This paper offers two possible explanations for this.…”

“…In addition, trading rules tend to lose their forecasting power over time due to increase in market efficiency. This has been widely documented in previous studies (see, for example, Marshall and Cahan (2005) in the New Zealand stock market and Loh (2005) in Australia). As a consequence, the global financial crisis (GFC) of 2008-2009 offers an interesting scope to test the profitability of the MA rules in recent times and consequently its practical and theoretical implications.…”

Testing the Predicting Ability of Technical Analysis Classical Patterns in the Egyptian Stock Market

“…Fang et al (2014); Fama and Blume (1966) and Jensen and Bennington (1970);Fama (1965Fama ( , 1970 However, a growing body of literature has been recognized recently that technical analysis could generate abnormal returns. For example (Zapranis & Tsinaslanidis 2012;Cervello-Royo;Guijarro & Michniuk 2015) for classical price patterns, (Marshall & Cahan 2005;Gustafsson 2012;Ülkü & Prodan 2013;Boboc & Dinică 2013;Baetje & Menkhoff 2016;Chen;Su & Lin 2016;El-Ansary & Atuea 2017) for technical indicators and (Brock;Lakonishok & LeBaron 1992;Bessembinder & Chan 1995) for both technical patterns and indicators. There was a common conclusion that returns achieved using technical rules significantly exceeded the returns generated through buy and hold strategy and that technical rules can help in predicting future returns.…”

“…-The daily returns of the EGX30 have been calculated following Marshall and Cahan (2005), based on the equation: Ln(P t )-Ln(p t-1 ), Where (P t ) is the price of the current day, while (P t-1 ) is the price of the previous day. …”

The use of technical analysis indicators in the Russian stock market

“…Среди них стоит выделить труды Александра Элдера «Как играть и выигрывать на бирже» 1 и «Трейдинг с доктором Элдером» 2 , «Технический анализ товарных и финансовых рынков» 3 Анны Эрлих, «Трейдинг. Дополнительное измерение принятия решений» 4 и «Практическое использование волн Эллиотта в трейдинге» 5 Валерия Сафонова, «Как увидеть деньги на экране монитора» 6 и «Кому светят японские свечи?» 7 Вениамина Сафина, а также многих других отечественных и зарубежных экономистов и финансистов (Володин, Кулагина, 2013;Володин, Янбаева, 2013;Жиркин, 2011;Заяц, 2013;Кашина, 2014;Кудряшов, 2009;Лебедева, Павлов, 2009;Соколова, Кузьмина, Тохтабаев, 2007;Трегуб, 2005;Трушанина, 2015;Яковлева, 2013;Cervelló-Royo, Guijarro, Michniuk, 2015;Chavarnakul, Enke, 2008;Chen, Huang, Lai, 2009;Hoffmann, Shefrin, 2014;Ko, Lin, Su, Chang, 2014;Marshall, Cahan, 2005;Pau, 1991;Teixeira, Oliveira, 2010;Yamaguchi, 1989;Yamamoto, 2012;Wang, Chan, 2007;Zhu, Zhou, 2009). …”