Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5083892 | International Review of Economics & Finance | 2012 | 20 Pages |
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.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Zi-Mei Wang, Chaoshin Chiao, Ya-Ting Chang,