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Estimating the portion of technical analysts in a market

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  • Jonathan Cook

Abstract

This article presents structural estimates of the portion of technical analysts in six markets. I find that the portion of technical analysts in the U.S. equity market has been decreasing since the 1970s. A simple asset pricing model predicts that both risk and return are increasing in the portion of technical analysts. This prediction is confirmed across stock market indexes for six countries.

Suggested Citation

  • Jonathan Cook, 2017. "Estimating the portion of technical analysts in a market," Applied Economics, Taylor & Francis Journals, vol. 49(41), pages 4127-4137, September.
    • Handle: RePEc:taf:applec:v:49:y:2017:i:41:p:4127-4137
    DOI: 10.1080/00036846.2016.1276274
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