Many studies have examined the benefits of conducting technical analysis on the stock market, with mixed results. With a view to clarifying the usefulness of technical analysis, this paper examines the capacity of technical analysis rules to predict future prices on the Amman Stock Exchange. As data for this research, a sample of closing prices for the general index on the Amman Stock Exchange was used. Our results show that technical analysis does have the power to predict the movement of the stock price, and to generate profitable buy and sell signals.
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