Is Technical Analysis Profitable on Athens Stock Exchange?

Abstract

In this paper, we incorporate a technical analysis strategy of the Greek Stock Market. These are the strategies used by most professionals and significant players in the field of investment analysis on the Greek market. Data has been collected from most of the investment companies in Greece. The most frequently used techniques of technical analysis, such as RSI, MACD and Stochastic, including the use of patterns and candlestick charts will be mentioned herein. The methods employed include the use of a questionnaire, as well as the use of statistical analysis. This research was conducted between 22 November 2014 and 22 December 2014. The results provide strong evidence of the profitability of technical trading rules and contradict the efficient market hypothesis.

Keywords: Technical analysis, MACD, RSI, Stochastic, Bollinger bands, trading strategy.