An Empirical Study on the Performance of the “Head-and-Shoulders” Technical Strategy

Abstract: The performance of technical analysis has long been a controversial topic between the practitioners and academics. In order to examine the performance of one of the most popular technical trading rules, the head-and-shoulders strategy, the study uses hourly historical data over the period...

Full description

Bibliographic Details
Main Author: Lan, Xin
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2014
Online Access:https://eprints.nottingham.ac.uk/27537/
Description
Summary:Abstract: The performance of technical analysis has long been a controversial topic between the practitioners and academics. In order to examine the performance of one of the most popular technical trading rules, the head-and-shoulders strategy, the study uses hourly historical data over the period of 01/06/2004-01/06/2014 on six currency pairs in foreign exchange market. Returns and profits were compared with buy-and-hold strategy and the results suggested that the head-and-shoulders strategy unperformed the buy-and-hold strategy.