Technical Analysis, Trading Opportunity, and Random Walk Hypothesis - A Review

Authors

  • Dipen Roy
  • Raju Paul

DOI:

https://doi.org/10.33516/rb.v49i1.143-159p

Keywords:

Technical Analysis, Random Walk Hypothesis, Stock Price, Price-Bar Chart

Abstract

Though Technical Analysis is an ancient method of investment analysis, yet, even today this method is highly effective in making investment decisions. The assumptions, based on which, technical analysis is developed, are found equally effective in this study. Price-bar chart formations unfailingly convey messages regarding future patterns of price movements. The trading signal postulated corresponding to a kind of price-bar chart formation stands mostly valid. Hence, it can be inferred that while the trend of future price movement and trend reversals can be predicted by studying a technical chart, the premises of the random walk hypothesis are required to be re-examined.

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Published

2024-03-23

How to Cite

Roy, D., & Paul, R. (2024). Technical Analysis, Trading Opportunity, and Random Walk Hypothesis - A Review. Research Bulletin, 49(1), 143–159. https://doi.org/10.33516/rb.v49i1.143-159p

Issue

Volume 49, Issue 1, April 2023

Section

Articles
Crossref
Scopus
Google Scholar
Europe PMC

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