Technical Analysis on the Swedish Stock Market: Evaluating the predictive ability of common technical trading rules
This paper investigates the predictive ability of technical trading rules (TTRs) on the Swedish stock market. Eight variations of two common TTRs—the relative strength index (RSI) and the moving average convergence/ divergence (MACD)—are applied on the constituent stocks of the OMX Stockholm 30 from January 2014 to December 2023. To evaluate forecasting ability, an event study is conducted. Abnorm