Identification through technical analysis: A study of charting and UK non-professional investors

Philip John Roscoe, Carole Howorth

    Research output: Contribution to journalArticlepeer-review

    20 Citations (Scopus)

    Abstract

    The usefulness of technical analysis, or charting, has been questioned because it flies in the face of the 'random walk' and tests present conflicting results. We examine chartists' decision-making techniques and derive a taxonomy of charting strategies based on investors' market ontologies and calculative strategies. This distinguishes between trend-seekers and pattern-seekers, and trading as a system or an art. We argue that interpretative activity plays a more important role than previously thought and suggest that charting's main appeal for users lies in its power as a heuristic device regardless of its effectiveness at generating returns.

    Original languageEnglish
    Pages (from-to)206-221
    Number of pages16
    JournalAccounting, Organizations and Society
    Volume34
    Issue number2
    Early online date17 Jul 2008
    DOIs
    Publication statusPublished - Feb 2009

    Keywords

    • Efficient capital-markets
    • Common-stock investment
    • Financial-markets
    • Performativity
    • Strategies
    • Economics
    • Sociology
    • Exchange

    Fingerprint

    Dive into the research topics of 'Identification through technical analysis: A study of charting and UK non-professional investors'. Together they form a unique fingerprint.

    Cite this