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Technical Analysis on Markets with Memory

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  • PhD Flifel Kaouther

Abstract

Economists note that financial markets are experiencing alternating periods of euphoria and depression. The question they ask is to know how to "beat the market". Some, relying on the analysis of covariance, affirm portfolio diversification, others lean towards the reflexive interaction "players" and the market, others base their theory on their own experiences, give particular attention to the intrinsic value of the business and provide a strong distinction between the investor and the speculator. In this article we will discuss the relative merits of two classic strategies of prediction, "fundamental analysis" versus "technical analysis "(or" Chartism ") and this for different cases of figs for markets with and without memory.

Suggested Citation

  • PhD Flifel Kaouther, 2013. "Technical Analysis on Markets with Memory," Business and Economic Research, Macrothink Institute, vol. 3(1), pages 498-511, June.
    • Handle: RePEc:mth:ber888:v:3:y:2013:i:1:p:498-511
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    References listed on IDEAS

    as
    1. Limam Imed, 2003. "Is Long Memory a Property of Thin Stock Markets? International Evidence Using Arab Countries," Review of Middle East Economics and Finance, De Gruyter, vol. 1(3), pages 56-71, December.
    2. Sweeney, Richard J., 1988. "Some New Filter Rule Tests: Methods and Results," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 23(3), pages 285-300, September.
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    More about this item

    Keywords

    Technical analysis; Fundamental analysis; Technical indicator; Long memory.;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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