Technical Analysis of a Non-Globally Integrated Stock Index

This study examines the Ecuadorian stock market index, ECUINDEX, a market that is not integrated into international financial markets, unlike others in Latin America. The objective was to determine if graphical technical analysis can describe the price behavior of the ECUINDEX, testing the weak-form...

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Main Authors: Franklin Antonio Gallegos-Erazo, Ana María Gallardo-Cornejo
Format: Article
Language:Spanish
Published: Universidad del Zulia 2025-04-01
Series:Revista Venezolana de Gerencia
Subjects:
Online Access:https://produccioncientificaluz.org/index.php/rvg/article/view/43707/51654
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author Franklin Antonio Gallegos-Erazo
Ana María Gallardo-Cornejo
author_facet Franklin Antonio Gallegos-Erazo
Ana María Gallardo-Cornejo
author_sort Franklin Antonio Gallegos-Erazo
collection DOAJ
description This study examines the Ecuadorian stock market index, ECUINDEX, a market that is not integrated into international financial markets, unlike others in Latin America. The objective was to determine if graphical technical analysis can describe the price behavior of the ECUINDEX, testing the weak-form efficient market hypothesis. Market stationarity was evaluated to identify suitable volatility indicators. A mixed-methods approach was applied, combining quantitative tests (Boxplot and Dickey-Fuller) with qualitative analyses (graphical observation of prices and TEMA, RVI, and MA indicators). Monthly and daily closing price data of the ECUINDEX from 2013 to 2023 were analyzed, obtained from the Quito Stock Exchange through Investing. The results reveal that the ECUINDEX is non-stationary and that technical analysis consistently describes momentum, price direction changes, and market turns, highlighting the usefulness of technical indicators for understanding price trends and market inefficiencies.
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publishDate 2025-04-01
publisher Universidad del Zulia
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series Revista Venezolana de Gerencia
spelling doaj-art-508c7e3d103d42a79e0fb1bec0f5f1902025-08-20T02:30:19ZspaUniversidad del ZuliaRevista Venezolana de Gerencia1315-99842477-94232025-04-0130110847864https://doi.org/10.52080/rvgluz.30.110.4Technical Analysis of a Non-Globally Integrated Stock IndexFranklin Antonio Gallegos-Erazohttps://orcid.org/0000-0002-7560-3514Ana María Gallardo-Cornejohttps://orcid.org/0009-0008-5545-3927This study examines the Ecuadorian stock market index, ECUINDEX, a market that is not integrated into international financial markets, unlike others in Latin America. The objective was to determine if graphical technical analysis can describe the price behavior of the ECUINDEX, testing the weak-form efficient market hypothesis. Market stationarity was evaluated to identify suitable volatility indicators. A mixed-methods approach was applied, combining quantitative tests (Boxplot and Dickey-Fuller) with qualitative analyses (graphical observation of prices and TEMA, RVI, and MA indicators). Monthly and daily closing price data of the ECUINDEX from 2013 to 2023 were analyzed, obtained from the Quito Stock Exchange through Investing. The results reveal that the ECUINDEX is non-stationary and that technical analysis consistently describes momentum, price direction changes, and market turns, highlighting the usefulness of technical indicators for understanding price trends and market inefficiencies.https://produccioncientificaluz.org/index.php/rvg/article/view/43707/51654financial marketsprice actionforecastingecuindex
spellingShingle Franklin Antonio Gallegos-Erazo
Ana María Gallardo-Cornejo
Technical Analysis of a Non-Globally Integrated Stock Index
Revista Venezolana de Gerencia
financial markets
price action
forecasting
ecuindex
title Technical Analysis of a Non-Globally Integrated Stock Index
title_full Technical Analysis of a Non-Globally Integrated Stock Index
title_fullStr Technical Analysis of a Non-Globally Integrated Stock Index
title_full_unstemmed Technical Analysis of a Non-Globally Integrated Stock Index
title_short Technical Analysis of a Non-Globally Integrated Stock Index
title_sort technical analysis of a non globally integrated stock index
topic financial markets
price action
forecasting
ecuindex
url https://produccioncientificaluz.org/index.php/rvg/article/view/43707/51654
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