Incorporating technical analysis in undergraduate curricula

Abstract

Purpose – The purpose of this paper is to introduce instruction of technical analysis on the undergraduate level that can coincide with traditional teachings of fundamental analysis. Design/methodology/approach – Through examples using the latest in security analysis technology, this paper illustrates the importance of technical security analysis. Findings – This research illustrates how technical analysis techniques may be used to make more significant investment decisions. Originality/value – Kirkpatrick and Dahlquist define technical analysis as a security analysis discipline for forecasting future direction of prices through the study of past market data primarily price and volume This form of analysis has stood in direct contrast to the fundamental analysis approach whereby actual facts of the company its industry and sector may be ignored. Understanding this contrast, much of academia has chosen to continue to focus its finance curricula on fundamental analysis techniques. As more universities implement trading rooms to reflect that of industry, they must recognize that any large brokerage trading group or financial institution will typically have both a technical analysis and fundamental analysis team. Thus, the need to incorporate technical analysis into undergraduate finance curricula.

Keywords

• Portfolio management
• Charting
• Student managed funds
• Technical analysis