Proficiency of Technical Analysis to Forecast Prices Crash in Capital Markets

We empirically examine Proficiency of Technical Analysis to forecast prices crash. Therefore, trading signal returns done by Technical Analysis rules have been evaluated. Sample prices data include Copper, Silver, Wheat, Gold, USD Dollar Index, Zinc, Still, WTI Oil, from 2000 to 2013 by referring to transaction costs. We next rely on T-TEST to evaluate prices crash and Pearson Correlation experiments to find indicators Correlation. There were five market prices crash over our sample period, we find important differences in the characteristics of market crashes between the instruments indexes. According to confidence level, 95% all the technical analysis indicators used in this research can forecast Prices Crash. findings are important, because the investors that uses technical analysts with six months or more investment horizons, technical trading rules continue to provide diversification benefits even during times of market crash crisis.

کلیدواژه ها:

Technical Analysis ، Capital Market ، Prices Crash ، Financial Crisis ،