Technical analysis in stock market seems to be helpful for investors to survive the financial crisis. To verify this point, we try to explore whether the moving average (MA) strategy is related to the investment performance. Here we apply the Golden Cross (Death Cross), a technical indicator signalling the time to buy (sell) when the short term moving average crosses above (below) the long term moving average, to 400 listed firms in the Taiwan stock market based on the approach of [8]. We find that Golden Cross (Death Cross) is positively (negatively) related to stock returns. However, the occurrences of Golden Cross and Death Cross before and after financial crisis are not significantly related to stock returns.
