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
Date Written: 2008
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: Suggested Citation