The purpose of this paper is to investigate the capability of a technical analysis to be used as a valuable tool in forecasting financial markets. After discussing the primary theoretical and methodological differences that oppose the fundamental analysis and technical analysis and introducing the Elliott waves theory, the paper focuses on the result s obtained after applying this method to the currency market. The results show that during the period from 2009 2015, the exchange rate between the U.S. d ollar and e uro could be forecasted with great accuracy. A potential future pattern is also proposed for the exchange rate beginning in March 2017. The research confirm ed the usefulness of Elliott’s model for predicting currency markets , and the effectiveness of the fundamental analysis theories generally adop ted for academic studies was evaluated.
The Effectiveness of the Elliott Waves Theory to Forecast Financial Markets: Evidence from the Currency Market
D'ANGELO E;
2017-01-01
Abstract
The purpose of this paper is to investigate the capability of a technical analysis to be used as a valuable tool in forecasting financial markets. After discussing the primary theoretical and methodological differences that oppose the fundamental analysis and technical analysis and introducing the Elliott waves theory, the paper focuses on the result s obtained after applying this method to the currency market. The results show that during the period from 2009 2015, the exchange rate between the U.S. d ollar and e uro could be forecasted with great accuracy. A potential future pattern is also proposed for the exchange rate beginning in March 2017. The research confirm ed the usefulness of Elliott’s model for predicting currency markets , and the effectiveness of the fundamental analysis theories generally adop ted for academic studies was evaluated.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
