Noise trades and foreign exchange volatility
by Walid Ben Omrane
International Journal of Bonds and Derivatives (IJBD), Vol. 1, No. 1, 2013

Abstract: This paper examines noise trade effects on foreign exchange volatility. Noise trades are mainly triggered by signals from technical analysis. These signals occur at the completion of a technical chart pattern. First, we develop and implement multiple pattern recognition algorithms to identify technical chart patterns. Second, we estimate technical signal effects on currency volatility. We show that technical signals attract noise traders with important order flow that boosts volatility.

Online publication date: Fri, 18-Jul-2014

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Bonds and Derivatives (IJBD):
Login with your Inderscience username and password:

    Username:        Password:         

Forgotten your password?


Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com