The use of technical analysis by fund managers: International evidence

Arbeitspapier

The use of technical analysis by financial market professionals is not well understood. This paper thus analyzes survey evidence from 692 fund managers in five countries, the vast majority of whom rely on technical analysis. At a forecasting horizon of weeks, technical analysis is the most important form of analysis and up to this horizon it is thus more important than fundamental analysis. Technicians are as experienced, as educated, as successful in their career and largely just as overconfident in decision-making as others. However, technical analysis is somewhat more popular in smaller asset management firms. What we find most significant is the relation of technical analysis with the view that prices are heavily determined by psychological influences. Consequently, technicians apply trend-following behavior.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Diskussionsbeitrag ; No. 446

Classification and Topics

• Classification: Wirtschaft ; Information and Market Efficiency; Event Studies; Insider Trading ; Pension Funds; Non-bank Financial Institutions; Financial Instruments; Institutional Investors
• Subject: fund managers ; technical analysis ; fundamental analysis ; personal characteristics ; investment behavior ; Investmentfonds ; Führungskräfte ; Anlageverhalten ; Wertpapieranalyse ; Persönlichkeitspsychologie ; Welt

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Menkhoff, Lukas
• Event: Veröffentlichung
• (who): Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät
• (where): Hannover
• (when): 2010

Further information

• Handle: http://hdl.handle.net/10419/38748
• Last update: 10.03.2025, 11:46 AM CET