Technical Analysis - Myth or Magic?: Magisterarbeit

Master's Thesis from the year 2010 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, grade: 1, Sheffield Hallam University (Sheffield Business School), language: English, abstract: Table of content

TABLE OF FIGURES"""""""""".""""""""""""""""""""."...I

GLOSSARY"""""""""""""""""""""""""""""""""".".....II

1. INTRODUCTION 1
2. SHARE ANALYSIS AND ITS PREMISES 5
3. 1 CLASSIFICATION AND DEVELOPMENT 5
4. 2 DOW THEORY IN CORRESPONDENCE WITH TA 6
5. 2.1 The Averages Discount Everything (except "Acts of God") 6
6. 2.2 The Three Trends 7
7. 2.3 The History repeats itself 10
8. 2.4 Criticism of the Dow Theory 11
9. 3 RANDOM WALK THEORY IN CORRESPONDENCE WITH BHS 12
10. 3.1 Criticism of the Efficient Market Hypothesis 15
11. 4 FUNDAMENTAL ANALYSIS 17
12. 5 TECHNICAL ANALYSIS VERSUS FUNDAMENTAL ANALYSIS 17
13. METHODOLOGY 20
14. 1 TEST CONDITIONS 20
15. 2 TESTED INDICES 23
16. INSTRUMENTS OF TECHNICAL ANALYSIS 25
17. 1 INDICATORS 25
18. 1.1 Moving Averages 25
19. 1.2 Moving Average Convergence Divergence 26
20. 1.3 Bollinger Bands 27
21. 2 OSCILLATORS 28
22. 2.1 The dilemma of Oscillators 28
23. 2.2 Momentum 28
24. 2.3 Relative Strength Index 30
25. 2.4 Slow Stochastic 31
26. 2.5 Combination of Indicators and Oscillators 32
27. 3 APPROACH TO PERFORMANCE TESTS 32
28. RESULTS/FINDINGS 34
29. 1 BHS 34
30. 2 EMA 35
31. 3 MACD 36
32. 4 BOLLINGER BANDS 37
33. 5 MOMENTUM 38
34. 6 RSI 39
35. 7 SLOW STOCHASTIC 40
36. ANALYSIS 41
37. 1 EMA 41
38. 2 MACD 43
39. 3 BOLLINGER BANDS 44
40. 4 MOMENTUM 45
41. 5 RSI 47
42. 6 SLOW STOCHASTIC 48
43. CONCLUSION 50
44. APPENDIX 53