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arXiv · 1302.1228

Efficient Markets, Behavioral Finance and a Statistical Evidence of the Validity of Technical Analysis

Marco Antonio Penteado
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Abstract

This work tried to detect the existence of a relationship between the graphic signals - or patterns - observed day by day in the Brazilian stock market and the trends which happen after these signals, within a period of 8 years, for a number of securities. The results obtained from this study show evidence of the existence of such a relationship, suggesting the validity of the Technical Analysis as an instrument to predict the trend of security prices in the Brazilian stock market within that period.

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Marco Antonio Penteado. 2013-02-05. Efficient Markets, Behavioral Finance and a Statistical Evidence of the Validity of Technical Analysis. https://arxiv.org/abs/1302.1228

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