Technical indicators are always taken as an important reference for making decisions on investments. And they have great impact on the stock returns during financial crisis. Thus, this research tries to study the dependence between stock returns and some indicators. These indicators include the frequency of golden-cross and the frequency of death-cross, which are based on the moving averages of long-term and short-term one. I have done cross-section analysis with Fama and MacBeth model by choosing totally 400 companies, top 200 and the bottom 200 respectively, as samples. Those companies are selected on Taiwan Stock Exchange by ranking with their associated capital. The results show that the stock return is positively correlated with the golden cross frequency while it is negatively correlated with the death cross frequency. And it has no correlation with the crosses whether the time period is right pre- or post- the financial crisis.
