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Examining the use of technical currency analysis
Author(s) -
Menkhoff Lukas
Publication year - 1997
Publication title -
international journal of finance and economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.505
H-Index - 39
eISSN - 1099-1158
pISSN - 1076-9307
DOI - 10.1002/(sici)1099-1158(199710)2:4<307::aid-jfe54>3.0.co;2-8
Subject(s) - currency , phenomenon , economics , foreign exchange market , technical analysis , foreign exchange , financial economics , monetary economics , physics , quantum mechanics
Although the use of technical analysis in foreign exchange markets is well known, enduring and possibly profitably used, it is not well understood. In this paper implications of the efficient market hypothesis for the use of technical currency analysis are examined by an evaluation of the response to a postal questionnaire by foreign exchange professionals in Germany. The results indicate that technical currency analysis should be interpreted not as either a marginal phenomenon or representing secondary information or a self‐eliminating or second‐best strategy, but possibly as a kind of self‐fulfilling prophecy. © 1997 John Wiley & Sons, Ltd.