摘要：As a technical indicator, technical range is widely used by chartists to read the minds of the markets. Theoretical properties and applications of this technical indicator would be of great interest to both academics and chartists. The main findings of this paper are: (1) technical range is a unit root process; (2) technical range is co-integrated with closing prices; (3) technical ranges are co-integrated if the corresponding closing prices are co-integrated. These findings are of great significance as it indicates that it is possible to scrutinize the predictive power of technical indicators by co-integration analysis. An empirical study performed on the US Apple Inc. stock prices demonstrates that trading strategy based on these findings could beat the simple buy-and-hold even after the trading costs have been removed.
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