Study On The Effectiveness Of Technical Analysis Of Stock Market In China

Technical analysis is always one of the important approaches to the analysis of securities investment, but its effectiveness is questioned by scholars. Chinese stock market is less mature and effective than foreign market. The question is whether technical analysis in Chinese stock market is effective. The article will give a brief research on the effectiveness of Chinese stock market through the following four chapters.The first three chapters introduce the definition,classification and history of technical analysis, compares technical with fundamental analysis to find out its advantages and disadvantages, and puts forward some theoretical assumptions in order to pave the way for further empirical research.Chapter four selects moving average technical analysis of stock market and introduces its classification, and application of law. The following empirical part is based on this method.Chapter five makes an empirical research on the effectiveness of simple moving average line in Chinese stock market by checking the stock index and stock through the crossing method.Chapter six is the conclusion and shortcomings of the research.