Research On The Effectiveness Of Simple Technological Analysis In Securities Market

Technological analysis is one of the most widely used analysis method on securities investing. The effectiveness of technological analysis is the precondition of its usage. According to the Efficient Market Theory, when the market fulfill the requirement of Weak Form of Efficient Market, Investor cannot acquire excess earnings through using technological analysis. So the issue of effectiveness of technological analysis and the issue of Weak Form of Efficient Market are the both sides of a coin.This Paper is tightly written surrounding these two contradictoriness issues. It is Spreaded from two directions of which are building theoretical model and experimental tests on Computational Experiment. After finish building the platform of Computational Experiment, we firstly ran the program without technological analysis agent, and then send the array of price to accept the test. We can get to the conclusion that the market is a Weak Form Efficiency MarketThen we put technological analysis agent into the model, and runs and tests it again. This time the result comes out that the market is no longer a Weak Form Efficiency Market. It shows that:If there are no technological analysis traders in the market, there will be no room for excess earnings for them neither. But when the technological analysis traders entered in, The market behavior will shows as if the excess earning opportunities created themselves.