An Empirical Study of the Eight Indicators at Market Opening on the Taiwan Futures Market

• Main Authors: Wei-chan Kao, 高偉展
• Other Authors: Tie-in Jin
• Format: Others
• Language: zh-TW
• Published: 2005
• Online Access: http://ndltd.ncl.edu.tw/handle/hk3m8t

碩士 === 朝陽科技大學 === 財務金融系碩士班 === 93 === Technical analysts often use certain tools with their indicators to discern the future path of asset price. Those methods are based on the semi-strong inefficiency model of the market. One of those is so called the “Eight Indicators at Market Opening”, which is original from Japan and currently well known and widely used around the Asian stock markets. The study empirical investigates whether this method is applicable on the Taiwan Futures Market. Evidence shows that this method is essentially useless. No excess return after transaction cost can be expected or actually obtained by using trading strategies based on such eight indicators. The hypotheses of efficient market hold well. Results of this study also show that only one of the eight indicators could earn very little profit if transaction cost was discounted. Therefore, it is recommended that no investor should apply this method in the future.