Can investors profit by utilizing technical trading strategies? Evidence from the Korean and Chinese stock markets

Financial Innovation

Table 9 CARs of continuously rising prices and K ≥ 80 (RSI ≥ 70) emitted (2009–2015) with power disclosed

Holding days	KOSPI 50					SSE 50
Holding days	N	Mean	t-test	ES	Power	N	Mean	t-test	SD	ES	Power
Panel A: Continuously rising prices and K ≥ 80 emitted
Panel A1: Continuously rising prices and K ≥ 80 for 2 days
1	473	− 0.002	− 2.432**	− 0.112	0.78	324	0.001	0.657	0.027	0.037	0.01
2	473	− 0.0052	− 4.028***	− 0.185	0.99	324	− 0.0012	− 0.483	0.045	− 0.027	0.12
3	473	− 0.0039	− 2.646***	− 0.122	0.84	324	0.0033	1.017	0.058	0.057	0.00
4	472	− 0.0051	− 3.061***	− 0.141	0.92	324	0.0055	1.495	0.066	0.083	0.00
5	472	− 0.0051	− 2.94***	− 0.135	0.90	324	0.0072	1.719	0.075	0.096	0.00
Panel A2 Continuously rising prices and K ≥ 80 for 3 days
1	116	− 0.0002	− 0.125	− 0.012	0.06	91	0.0017	0.375	0.043	0.039	0.02
2	116	− 0.0024	− 0.995	− 0.092	0.26	91	0.0059	0.938	0.060	0.098	0.00
3	116	− 0.0032	− 1.085	− 0.101	0.29	91	0.0052	0.711	0.070	0.075	0.01
4	116	− 0.0038	− 1.287	− 0.119	0.36	91	0.0011	0.12	0.087	0.013	0.04
5	116	− 0.0036	− 1.149	− 0.107	0.31	91	0.0038	0.4	0.091	0.042	0.02
Panel A3: Continuously rising prices and K ≥ 80 for 4 days
1	35	− 0.0028	− 0.747	− 0.126	0.18	25	0.0043	0.752	0.029	0.150	0.01
2	35	− 0.009	− 1.698*	− 0.287	0.52	25	0.0011	0.142	0.039	0.028	0.04
3	35	− 0.0118	− 2.447**	− 0.414	0.79	25	− 0.0074	− 0.779	0.047	− 0.156	0.19
4	35	− 0.0116	− 2.38**	− 0.402	0.77	25	0.0035	0.261	0.067	0.052	0.03
5	35	− 0.0054	− 0.821	− 0.139	0.21	25	0.0143	1.021	0.070	0.204	0.00