A Comparative Hybrid Method in Technical Analysis for Stock Selection Process in Banking Sector by Fuzzy AHP-Topsis and Vikor Method

Literature Review

Even if there are a lot of studies on the technical analysis, the most of the researches mainly focus on the limited issues of the analysis. In 1700s, first speculative movements on the basis of the candlestick patterns were seen in Japan rice market. In 1880s, the Dow Theory established by Charles Dow in the United States introduced the main pillars of the technical analysis. Cowles conducted one of the first studies regarding the technical analysis in 1933. The consecutive studies on the technical analysis have been flourishing on the basic issues of technical analysis by the 1960s. After the 1970s, the empirical studies have been located at the prominent level. However, the recent studies have been generally based on the more complex problems by the 1990s (Zhu and Zhou, 2009).

The major studies on the technical analysis strategies in international capital markets have been conducted 1960s to the present. However, the foreign exchange market has been frequently utilized in the trading strategies for technical analysis. A number of the studies demonstrate that arbitrage-based strategies are mostly the well-known arguments in the emerging economies. Especially, technology firms including media and telecommunication as well as firms in the creative economy are the focal point of researches on technical analysis (Sadorsky, 2003; Shynkevich, 2012). Some of the recent subjects on technical analysis can be summarized as follows: