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Research References for Testing EMA Strategies in Forex

Article Quant Q&A · Author: user5257
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Summary

The document asks how to evaluate exponential moving averages as a forex trading strategy and requests research on their effectiveness. The response offers two starting references on technical analysis in foreign exchange: a 1992 study of technical analysis in the foreign exchange market and a 1998 study of dealers’ use of fundamental and technical analysis, based on Hong Kong evidence.

These citations can guide a literature search, but the document does not summarize their findings, provide a test design, or report performance results. It therefore points toward relevant research rather than demonstrating that an EMA strategy is profitable or effective. A trader would need to consult the papers and define a reproducible evaluation, including costs and out-of-sample assessment, before drawing conclusions.

Key ideas

  • The question concerns testing exponential moving averages as a forex trading approach.
  • The response cites research on technical analysis in foreign exchange markets.
  • One cited study examines dealers’ use of fundamental and technical analysis in Hong Kong.
  • No study findings or EMA-specific performance results are summarized in the document.

Tags

ForexTechnical indicatorsBacktesting
Full text
# How to test the efficiency of Exponential Moving Averages as a trading startegy?


# How to test the efficiency of Exponential Moving Averages as a trading startegy?












I would like to know how I can test the efficiency of Exponential Moving Averages when it comes to forex trading. Can i have any papers that point to the efficiency of this strategy?

Thank you. :)

## Answer by vonjd (score 3)

https://quant.stackexchange.com/a/7914

Two good starting points are here:

- Allen, Helen, and Mark Taylor. “The Use of Technical Analysis in the Foreign Exchange Market.” The Journal of International Money and Finance, June 1992, pp. 304-314.

- Lui, Y.H., and D. Mole. “The Use of Fundamental and Technical Analyses by Foreign Exchange Dealers: Hong Kong Evidence.” The Journal of International Money and Finance, Volume 17, Number 3, 1 June 1998, pp. 535-545.

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