Is it possible to successfully predict the movements of stock indices using technical indicators?

Technical, or chartist, analysis of financial markets involves providing forecasts or trading advice on the basis of largely visual inspection of past prices, without regard to any underlying economics or fundamental analysis. There are more than 100 technical indicators; each one has its own unique features and functions. Traders use these tools to identify trading opportunities and sometimes make abnormal returns. However, two major concerns regarding the use of technical indicators are whether historical information is useful in predicting the future movement of stocks and whether the use of too many indicators will lead to the path of analysis paralysis. I demonstrate, using four indicators and seven indices from three continents and seven countries over a 20-year period, that technical indicators can successfully predict the future movement of stocks. The results show that on their own those indicators can provide some true signals, but when combined, they only work when there is a strong market trending momentum or significant market reversal.