How low can you go? How high can you fly? Exploiting reversals following N-day highs and lows in the Forex- and the Swedish stock market and the implications of this for the hypothesis of weakly efficiant markets

Abstract: This thesis deals with technical analysis, exploring the profitability of a trading strategy based on buy/sell signals after N-day lows/highs. The strategy is tested on 10 years of data in the Forex market and the Swedish stock market. The results show that significant profit can be made, and this is discussed in light of the hypothesis of weak market efficiency.