Incorporating Technical Analysis Into Behavioral Finance: A Field Experiment in the Large Capitalization Firms of the Athens Stock Exchange

International Research Journal of Finance and Economics, 9(14), pp 100-112 (2008)

21 Pages Posted: 11 Sep 2014

See all articles by Dimitrios Vasiliou

Dimitrios Vasiliou

National and Kapodistrian University of Athens

Nikolaos Eriotis

National and Kapodistrian University of Athens

Spyros Papathanasiou

National and Kapodistrian University of Athens

Date Written: 2008

Abstract

In this paper we try to apply Technical Analysis methodology into the Behavior Theory for the large capitalization firms of the Athens Stock Exchange (ASE). In Behavioural and in Technical Theory we observe a combination between fundamental (rational) and psychological – emotional (irrational) factors. We use standards tests in combination with bootstrap methodology under the AR(1) & GARCH(1,1) models. On the whole, the results support a strong increase in trading rules performance over time. Hence we notice the existence of the behavioral phenomenon in the large capitalization firms of the Athens Stock Exchange.

Keywords: Behavioral Finance, Technical Analysis, Bootstrap.

JEL Classification: G12, G14

Suggested Citation

Vasiliou, Dimitrios and Eriotis, Nikolaos and Papathanasiou, Spyros, Incorporating Technical Analysis Into Behavioral Finance: A Field Experiment in the Large Capitalization Firms of the Athens Stock Exchange (2008). International Research Journal of Finance and Economics, 9(14), pp 100-112 (2008), Available at SSRN: https://ssrn.com/abstract=2494220

Dimitrios Vasiliou

National and Kapodistrian University of Athens ( email )

Athenes
Greece
0030 210 3689486 (Phone)

Nikolaos Eriotis

National and Kapodistrian University of Athens ( email )

5 Stadiou Strt
Athens, 12131
Greece

Spyros Papathanasiou (Contact Author)

National and Kapodistrian University of Athens ( email )

1, Sofokleous Str.
Athens, 10559
Greece

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