Several studies provide theoretic analysis of agents' motivations for trading in financial markets. Broadly speaking, these studies imply that trading volume results from (i) information flows, (ii) cross-sectional differences in agents' assessment of value, and (iii) agents' random liquidity...

We further investigate and provide interpretation for the intriguing Brock, Lakonishok, and LeBaron (1992) finding that simple forms of technical analysis contain significant forecast power for US equity index returns. We document that the forecast ability is partially, but not solely,...

We investigate whether the demonstrated effectiveness of technical analysis for forecasting equity returns can be reconciled with market efficiency. We find that evidence supportive of technical sell signals identifying periods of negative expected returns is confined to the pre-1940 subsamples....