Verification of Technical Analysis Rules Applicability

Abstract

Technical analysis refers to predicting price trends and strategies for determining investments by studying information from past financial markets, now technical analysis is more and more important for the investors, it can help them to choose the right trading time. The goal of the thesis is to make the verification of the technical analysis based on the historical data, we select six stocks to analyze from Hang Seng Index. In this thesis, we make the verification of technical analysis based on the historical data. We do the verification of technical analysis by using the moving average, Bollinger band, RSI and CR indicator. Then we make the conclusion whether the technical analysis works or not based on the application of those indicators.