Effectiveness of technical analysis indicators over stock return: A Panel Data Approach

Article OPEN
Kutluk Kaðan SÜMER (2015)
  • Journal: Eurasian Eononometrics, Statistics and Emprical Economics Journal, volume 1, issue 1 Apr, pages 43-56
  • Subject: Stock Exchange; BIST; Technical Analysis; Technical Analysis Indicators, Panel Data, Banking Sector, econometrics, econometric models, financial econometrics
    • jel: jel:C23 | jel:C58 | jel:G14 | jel:G17

Technical analysis aims on visually identifying geometrical patterns and indicators in price charts in order to anticipate price “trends”. This paper investigates the relations between return and technical analysis indicators of Turkish commercial banking sector in BIST-BANKING index for the period 1-1-2000- 31-12-2013. Technical analysis indicators are generated by taking into account the daily stock prices. The general steps go through the identification of the relations for the securities returns and technical analysis indicators. We illustrate the proposed with a panel data methodology including several securities of banking sector. Our investigation shows that there is a statistically significant relation between technical analysis indicators and stock returns as panel.
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