Abstract: Focuses on dynamic models. The emphasis is on explaining technical analysis. These models show that past prices still carry valuable information. Some of these models also explain why it is rational for some investors to ‘chase the trend’. Other models are devoted to the informational role of trading volume. The insiders’ optimal dynamic trading strategy over different trading periods is derived in a strategic model setting.

Keywords: dynamic trading models, forecasting, infinite regress problem, technical analysis, trading volume, trend-chasing,