Technical Analysis: A Cross-Country Analysis

55 Pages Posted: 3 Nov 2014

See all articles by Jiali Fang

Jiali Fang

Massey University - School of Economics and Finance

Date Written: November 2, 2014


While commonly used technical trading strategies generate positive returns in most of the 50 countries in my sample, the same strategies show no merit in countries such as the United States and the United Kingdom. I investigate possible cross-country determinants of technical trading profits and find that the returns of technical analysis are higher in countries where investors are less culturally individualistic, markets that are less developed and/or integrated, and where information uncertainty is greater. The returns are also higher during recessions than during expansions. My results are consistent across 26 simple technical trading strategies and robust to a number of alternative measures to the proposed explanations.

Keywords: technical analysis; market efficiency; return predictability; behavior bias

JEL Classification: G10, G12, G14

Suggested Citation

Fang, Jiali, Technical Analysis: A Cross-Country Analysis (November 2, 2014). Available at SSRN: or

Jiali Fang (Contact Author)

Massey University - School of Economics and Finance ( email )

Private Bag 102904, North Shore
Auckland, 0745
New Zealand

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