Book | Finance area | Year 2017
 

Technical trading and market efficiency in Asian equity markets

by Piyapas Tharavanij
  
  Information Efficiency and Anomalies in Asian Equity Markets: Theories and evidence Routledge

Abstract

This chapter explores the issue of equity market efficiency and its implication on technical trading. According to the efficient market hypothesis (EMH) (Fama, 1970), which states that all available and relevant information must already be incorporated in security prices, technical trading rules, which use only historical trading data, cannot generate positive abnormal returns. If investors could make money from applying technical trading rules, this would indicate that the market is inefficient.

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