The Science Behind Technical Trading [Part Three]

This is the second part in a ten part series on the science behind technical trading. Parts one and two of the series can be found below.

• The Science Behind Technical Trading [Part One]
• The Science Behind Technical Trading [Part Two]

Continued from part two…

Conclusion

Of the 92 modern studies, 58 (63%)  found profitability in technical trading strategies, while 24 (26%) reported negative results. The remainder indicated mixed results.

The results differed significantly between markets. Modern studies indicated that technical trading strategies had been able to yield economic profits in US stock markets until the late 1980s, but not thereafter -- too many traders chasing patterns perhaps?

However, several studies found economic profits in emerging stock markets (see earlier article: Is...