The Effectiveness Of The William Indicator In The Shenzhen Stock Market Is Tested

Stock market plays a major role in the development of the finance markets,Stock market gradually becomes the main way to finance and invest in the current market.As we all know,we can predict the economy by the stock market.It also helps to promote the disposition of social recourse and predict the economic cycle.The research of the stock market has been attracted by the scholars from home and abroad,especially technical analysis in the securities investment.More and more scholars have attracted to explore technical analysis.William indicators method usually was used by the investors in the technical index method.This paper mainly target on the empirical study of the effectiveness of the William indicators in the Shenzhen stock market.Firstly,we choose 90 constituent stock from Shenzhen stock exchange and price data from Shenzhen index from January,1,2014 to December,31,2018.Secondly,we analysis descriptive statistics to the unconditional return stocks and test the standard and stability of the excess profits based on the William indicators.Finally,we draw a conclusion by comparing to the return of the stocks based on unconditional return and William indicators.We find that William indicators could help to predict in the Shenzhen stock market,especially to predict the small value of exchange stocks andprovide suggestions for the Shenzhen stock market and inverstors.Technical analysis has the new development,Instead of disappearing more and more small group of investors mastered and applied the technical analysis method.