This study investigates the forecast power of technical analysis in the equity markets by applying simple technical trading rules to the Athens General Index and DAX. The results produce evidence that technical analysis is a valuable investment tool, especially in the case of the Athens Stock Exchange. Moreover, the ability of simple moving average rules appears to be dominant in the last few years, when excess returns are earned over a naive buy-and-hold strategy even after the deduction of transaction costs.

Michael Glezakos, Petros Mylonas (2003). Technical Analysis Seems To Be A Valuable Investment Tool In The Athens And Frankfurt Stock Exchanges, European Research Studies Journal Volume VI Issue 1-2, 169-192