The purpose of this thesis is to investigate the usefulness of technical analysis techniques as stock price forecasting method in korean stock market. Technical analysis techniques analyze internal stock market data to select individual stock and determinate timing of buying or selling.
In this thesis, three technical investment techniques based on technical analysis were selected and applied to twenty individual stocks. Also, criteria for buying or selling were alternated in several directions to examine the usefulness of each technique for a whole and specific time-period through comparision the rates of return that were come from each technical investment strategy and buy & holding strategy.
The result of this thesis can be summarized as follows. First, the investment strategy based on technical analysis cannot cause continuous excess return. Second, technical investment strategies are more applicable to long-term than short-term investment. Third, technical investment strategy can bring about excess return in a specific time-period.
