Technical analyses and order submission behaviors: Evidence from an emerging market

Zi-Mei Wang, Chaoshin Chiao and Ya-Ting Chang

International Review of Economics & Finance, 2012, vol. 24, issue C, 109-128

Abstract: The usefulness of technical analyses has never reached a consensus. Unlike most literature studying stock price behaviors surrounding the presence of technical trading signals, this paper examines the heterogeneity in order submission behaviors of investors in the Taiwan Stock Exchange. Our results show that professional institutional investors, particularly foreign investors, behave in a manner consistent with the suggested strategy by the KD trading rule. Namely, after the presence of buy (sell) signals, they intend to buy (sell) the stocks. Conversely, individual investors, acting like liquidity suppliers, tend to net sell (buy) those stocks.

Keywords: Technical analysis; KD; MA; Order imbalance; Marketable order imbalance (search for similar items in EconPapers)
JEL-codes: G14 G15 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (14)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:24:y:2012:i:c:p:109-128

DOI: 10.1016/j.iref.2011.12.002

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