Moving averages technical analysis pdf9/22/2023 Technical analysis is based on the idea that prices move in trends according to Pring ( 1991, p. The first strategy is based on Technical Analysis (TA), and the second is based on Gold Momentum Strategy (GMS) which is based on switching between the index and gold. In this paper, we will advocate two strategies for Portuguese investors that are superior to the BH strategy recommended by the EMH. Advocates of EMH argue that the best strategy would be to buy the market index and keep it for the long term, or the famous buy and hold strategy (BH). Therefore, the weak-form market efficiency hypothesizes that investors may not drive profits above a buy-and-hold strategy using any technical trading rule that depends on price and/or volume implying that technical trading rules are useless. Academicians in general and finance professors in particular believe in the Efficient Market Hypothesis (EMH) that asserts stock prices already reflect all information such as the history of past prices or trading volume.
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