Technical Analysis on the Taiwan Stock Market Index: the Case of OX Chart

• Main Authors: Hung-Ching Tsai, 蔡宏清
• Other Authors: Chin-Sheng Huang
• Format: Others
• Language: zh-TW
• Published: 2003
• Online Access: http://ndltd.ncl.edu.tw/handle/44388835439332845292

碩士 === 國立雲林科技大學 === 財務金融系碩士班 === 91 === This study employs the OX chart as the technical indicators on the Taiwan Stock Market Index to investigate the profitability of these trading rules. OX chart is one of the oldest practitioner techniques for analyzing price movements in financial markets, yet has received almost no coverage in the academic finance literature. Our study uses eight pre-defined OX trading rules on the Taiex and empirically tests the related trading performance. The empirical results show: (1) the trading frequency profoundly depends on the stringency of trading criterion that triggers the trading signal; (2) the OX chart trading rules cannot systematically outperform the buy and hold strategy; (3) the OX chart trading performance is sensitive to its parameters’ setting.