How Technical patterns are used in the Tehran Securities Exchange
Subject Areas : Futurology
1 - ندارد
2 - ندارد
Keywords: Technical patterns, Head and shoulders pattern, Rectangle pattern, Symmetrical Triangle, Thran Securities Exchange,
Abstract :
Technical trading analysis and fundamental analysis are two views about stock price prediction . In this work , I focus technical analysis . Technicians believe that they can predict stock prices and earn excess profits . This work is separated in to two parts : The first part will ask if predictable patterns in stock prices exist as technical traders sumise , or if these patterns are spurious as fundamental analysis would hypothesize . The second part will ask if profit can be consistently made according to the technical trader’s rule for pattern trading , or if these profits are inconsistent to evaluate the first part , this work uses a Monte Carlo experiment the number of times three technical trading patterns are found in actual stock price series to the number of times these patterns are found in randomly – generated series chosen to mimic the actual stock series . To evaluate the second part , these works calculate the return gained from following technical trading regarding the patterns . The evidence shows that rectangle pattern can not use in stock price prediction in Tehran Security Exchange . Head & Shoulders and symmetrical triangle patterns can use in stock price prediction in Tehran Security Exchange .
