Stock Price Movement through Technical Analysis: Empirical Evidence from the Information Technology (IT) Sector

Singh, Shalini; Chakraborty, Anindita

doi:10.21013/jmss.v3.n1.p13

Cited by 2 publications

(2 citation statements)

References 0 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…By analyzing these factors, investors can evaluate the intrinsic value of a company's stock and determine if it is overvalued or undervalued. Technical analysis focuses on studying historical price patterns, trading volumes and market trends (Singh & Chakraborty, 2016). It utilizes various tools and indicators to identify patterns that may signal a potential decline or reversal in stock prices (Lee et al 2022).…”

Section: Resultsmentioning

confidence: 99%

Empirical Analysis of Stock Markets That Are More Prone To Losses: A Standard Coverage Test Approach

Enow

2023

DIJEFA

View full text Add to dashboard Cite

Stock market losses have been a recurring phenomenon in financial markets with far reaching implications for investors as it directly impacts the value of their portfolios and potentially jeopardizing retirement savings leading to a loss of income. Identifying stock markets that may realise less returns on investments has been critical area for portfolio managers and active market participants. Therefore, the aim of this study was to empirically investigate financial markets that are prone to losses in order to safeguard and protect investments. A standard coverage test analysis was applied in five selected markets for a sample period from June 7, 2018 to June 7, 2023. This coverage test was used to identify stock markets that breached their generalised indicators and expected losses. The findings revealed that stock market losses are significantly higher in the CAC 40 and Nikkei 225. This was evident in the significant risk violations from their expected levels. By implication, investors willing to invest in the CAC 40 and Nikkei 225 are advised to use sector diversification strategies, stop-loss orders and long term investment strategy to mitigate some of these losses.

show abstract

Section: Resultsmentioning

confidence: 99%

Empirical Analysis of Stock Markets That Are More Prone To Losses: A Standard Coverage Test Approach

Enow

2023

DIJEFA

View full text Add to dashboard Cite

show abstract

“…The technical indicator MACD indicates convergence and divergence with the help of two moving averages i.e., 12 day EMA which is fast line and 26 day EMA which is a slow line, and further indicates buying and selling between the two lines. Above or below each other at a point when the histogram is either 0 or min above 0 or below 0 (Singh & Chakraborty, 2022).…”

Section: Introductionmentioning

confidence: 99%

Use of Moving Average Convergence Divergence for Predicting Price Movements

Joshi¹

2022

Int. Res. Jnl. MMC

View full text Add to dashboard Cite

The main purpose of this study is to carrying out how Moving Average Convergence Divergence (MACD) works for predicting price of securities and to assist investment decisions. It is one of the powerful technical indicators, which is frequently used by technical analysist in stock market. However, most tests fail to verify performance with traditional parameter settings of 12, 26, and 9 days. This technique consists of a combination of close neighbor classification and some well-known tools of technical analysis, namely, stop loss or stop profit. In order to evaluate the potential use of the proposed method in practice, we compare the results obtained with the results obtained by adopting the buy and hold strategy. This paper shows how trade signal generated by this indicator can be used to minimize trading risk in markets. This study also tests which model is able to improve profitability by applying additional criteria to avoid false trade signals. The key performance measure in this technique is profitability. Technical analysis is used to assist in properly timing entry and exit points, when to buy and sell of stocks?

show abstract

Stock Price Movement through Technical Analysis: Empirical Evidence from the Information Technology (IT) Sector

Cited by 2 publications

References 0 publications

Empirical Analysis of Stock Markets That Are More Prone To Losses: A Standard Coverage Test Approach

Empirical Analysis of Stock Markets That Are More Prone To Losses: A Standard Coverage Test Approach

Use of Moving Average Convergence Divergence for Predicting Price Movements

Contact Info

Product

Resources

About