;This thesis takes the effect of “nonsynchronous reporting” and “liquidation mechanism” into the technical analysis to examine whether the trading rules work or not in reality. In order to reflect reality, this thesis does not execute the trading instantly when the indicator triggers but postpone the trading to the next trading day at an opening price. Besides, this thesis adds the liquidation mechanism into technical analysis. The result states that generating the profitability of trading rules in the real world is difficult. The proportion of samples which can beat the B&H strategy significantly is not high. Besides, the difference between the overall returns of technical and the B&H strategy narrows down obviously with the nonsynchronous reporting and liquidation mechanism. The result proves that the effectiveness of technical analysis weakens when I cannot execute the trading immediately and are restricted to the liquidation mechanism. Keyword: Technical analysis; Nonsynchronous reporting; Liquidation mechanism
