Estimating the portion of technical analysts in a market |
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Authors: | Jonathan Cook |
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Institution: | Public Company Accounting Oversight Board, Washington, DC, USA |
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Abstract: | This article presents structural estimates of the portion of technical analysts in six markets. I find that the portion of technical analysts in the U.S. equity market has been decreasing since the 1970s. A simple asset pricing model predicts that both risk and return are increasing in the portion of technical analysts. This prediction is confirmed across stock market indexes for six countries. |
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Keywords: | G12 C11 G02 |
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