The Use of Technical Analysis by Fund Managers:International Evidence

The use of technical analysis by financial market professionals is not well understood. Thispaper thus analyzes survey evidence from 692 fund managers in five countries, the vast majorityof whom rely on technical analysis. At a forecasting horizon of weeks, technical analysis isthe most important form of analysis and up to this horizon it is thus more important than fundamentalanalysis. Technicians are as experienced, as educated, as successful in their careerand largely just as overconfident in decision-making as others.[...]