Using technical indicators in swing and position trading of financial instruments

Abstract

This study sets technical analysis in the context of organized markets (exchages). Two commonly used indicators are explained and the trading signals given by these indicators fron 1990 to 2023 are evaluated in an ex post approach. A simple trading rule is defined and the profit of this rule is calculated over the period 1990-2023. Without accounting for exchange commisions the rule yielded excess profit over the treasury benchmark.