jmgt.12.2.13730
A Study on the Relevance of Technical Analysis in Detecting Trading Signals in Indian Equity Markets
Pavankumar Chandrappa
Triveni P.
Journal on Management
2230–715X
12
2
61
68
10.26634/jmgt.12.2.13730
Technical Analysis, Technical Indicators, Trading, Wall Street, Demand, Supply, Market Efficiency, Prediction, Price Behaviour, Stock, Prices, Markets, Fundamentals, Equity
Often, investors, especially retail investors are confused about the relevance of technical analysis in equity analysis. The usefulness of the concept has been debated, deliberated and censured by several scholars. The fundamental analysts have shunned the theory stating that technical analysis is similar to astrology. Some of the studies conducted by the scholars from universities like Stanford, Oxford, and Massachusetts Institute of Technology during 1960's have shown that technical analysis tools are not effective in generating consistent trading signals. Despite all these eruptions, the concept of technical analysis is becoming popular amongst traders and investors. The proposed study attempts to contribute to the ongoing discussions about the relevance of technical analysis in detecting trading signals in stock markets. The study would have an enormous practical impact on investors and brokers and the way they approach the market. The study also tests the scientific orientation behind the technical indicators and some of the strong deliberations happening around the concept.
September - November 2017
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