Applied Technical Analysis of Energy and Commodity Markets
History and Survey of technical Analysis.
Your paper should have 4 sections:
2. Literature review of articles written between 2000-2009
3. Literature review of articles written after 2009 to present
In section 1 you should explain technical analysis and discuss its historical evolution. (At least two citations needed for this part).
In the second section, you should make a survey of academic papers written on technical analysis or technical trading on stock market indexes or individual stocks and explain the conclusion of each article whether the article concludes technical trading works or does not work or is inconclusive.
Here is an example of a citation that you must follow in your paper:
A research paper on technical analysis by Brock, Lankonishok and LeBaron (1992), investigates moving averages and trading range breakout rules on the Dow Jones Industrial Index from 1897 to 1985. They used various short and long moving averages of prices to generate buy and sell signals. They tested long moving averages of 50, 150 and 200 days with short averages of 1, 2 and 5 days. They point out that “all buy-sell differences are positive and the t-tests for these differences are highly significant…” and they go on to conclude that their “results are consistent with technical rules having predictive power (p.1758)”.
Your paper should not include the above example. In addition, your paper should not include articles written by me.
Your survey should include 5 citations on papers written between 2000 to 2009 and 5 citations on papers written after 2009. These should not include papers written by me (Metghalchi).
In the last section you should write your conclusion.
And then provide the 12 references cited in your midterm (See below); 2 citations from section 1 and 5 citations on papers between 2000-2009 and five on articles written after 2009.
1. Brock W., Lakonishok, J., and LeBaron B. (1992), “Simple Technical Trading Rules and the Stochastic Properties of Stock Returns”, Journal of Finance, 47, pp. 1731-64.
Minimum is 12 citations however you can cite as many as you like. No restriction on pages
Good grades will be given to those papers that includes the followings for each citation:
1. The study used data from what year to what year. For the example of Brock et al, the year was 1897 to 1985.
2. Include the name of the index that the study was done. For example, in the Brock et al, The Dow Jones Industrial index was used.
3. The names of indicators. For Brock et al, the indicators were moving average and trading breakout rules.
4. Conclusion of the study, whether the author shows technical analysis works or does not work.
Number of pages is up to you. But you must have 12 citations in your reference.