Digital Scholarship @ Tennessee State University

Article Title

Back to the Future. A Behavioural Perspective on Technical Analysis into PIGS Countries

Authors

Spyros Papathanasiou, Hellenic Open University, 1 Kekropos Street, GR –19001, Keratea, Greece
Dimitrios Vasiliou, Hellenic Open University, 16, Sahtouri Str. and Ag. Andreou Str. GR-262 22 Patra
Nikolaos Eriotis, National & Kapodistrian University of Athens, 5 Stadiou Street, GR–105 62, Athens, Greece

Abstract

In this paper, we investigate the possible presence of the behavioural phenomenon in the stock markets of some members of the European Union who are historically known as PIGS (Portugal, Italy, Greece and Spain). We used technical analyses methods and rules to explain behavioural phenomenon in the examined stoch markets. We use different types of moving average technical rules. We perform some further analyses and tests. In our further analyses, we apply standard t-tests in combination with bootstrap methodology under the GARCH (1,1) null model. Overall, the results obtained in the paper show that our technical strategies (buy and hold) “win” the market and that there is a presence of European phenomenon in the PIGS stock markets. In addition, we document significant excess returns for moving average trading strategies and reject the weak-form efficient market hypothesis of

Fama (1965).

Recommended Citation

Papathanasiou, Spyros; Vasiliou, Dimitrios; and Eriotis, Nikolaos (2015) "Back to the Future. A Behavioural Perspective on Technical Analysis into PIGS Countries," Annals of Management Science: Vol. 4 : No. 1 , Article 4.
Available at: https://digitalscholarship.tnstate.edu/ams/vol4/iss1/4