Roscoe, P and Howorth, C A (2009) Identification through technical analysis : a study of the charting behaviour of UK non-professional investors. Accounting, Organizations and Society, 34 (2). pp. 206-221. ISSN 0361-3682
Full text not available from this repository.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.