Revisiting the Performance of MACD and RSI Oscillators

Chong, Terence Tai Leung; Ng, Wing-Kam; Liew, Venus Khim−Sen

doi:10.3390/jrfm7010001

Cited by 61 publications

(32 citation statements)

References 21 publications

(43 reference statements)

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“…Thus, the analysis of the RSI will have an impact on stock prices. This is in line with previous research conducted by Hai-Ping and Pin (2013), Abbad et al, Singla (2015), Chong et al (2014) and Bhargavi et al (2017) that RSI positive effect on stock prices.…”

Section: Methodssupporting

confidence: 92%

“…Then the influence of another variable of 35% is thought to influence the volume of stock trading, return on investment, return on equity and national economic development. Then partially the relative strength index has a significant positive effect on stock prices in LQ45 companies registered in the Indonesian securities Stock Exchange (IDX) for the 2013-2016 period, this is in line with the results of research by Hai-Ping and Pin (2013); Abbad et al; Singla (2015) Chong et al (2014) and Bhargavi et al (2017). Furthermore, earning per share has a significant effect on stock prices in LQ45 companies listed on the Indonesia Stock Exchange (IDX) for the 2013-2016 period in accordance with the results of research by Hunjra et al (2014), Seetharaman and Raj (2011).…”

Section: Significance T-testsupporting

confidence: 78%

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Analysis Relative Strength Index and Earning per Share on Stock Price (Survey on LQ 45 Companies for the 2014-2016 Period)

Badruzaman¹

2020

Int. Bus. Manage.

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This study aims to determine the effect of the relative strength index and earnig per share on stock prices. The research design used is a quantitative approach with a population of all companies in the LQ45 category listed on the Indonesia stock exchange for the 2013-2016 periode. The sampling technique used was purposive sampling. Based on the criteria set, 13 companies were obtained. The results showed that the relative strength index and earning per share had a significant positive effect on stock prices in the LQ45 company on the Indonesia stock exchange for the period 2013-2016.

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Section: Methodssupporting

confidence: 92%

Section: Significance T-testsupporting

confidence: 78%

Analysis Relative Strength Index and Earning per Share on Stock Price (Survey on LQ 45 Companies for the 2014-2016 Period)

Badruzaman¹

2020

Int. Bus. Manage.

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“…Accordingly, future studies can explore potential market inefficiency exploitation by utilizing more refined trading rules such as the moving average convergence divergence (MACD) and relative strength index (RSI) used by Chong et al (2014) and Nor and Wickremasinghe (2014) to reveal if they can still earn traders abnormal returns (after adjusting for costs and risks) in emerging markets. The utilization of sophisticated modelling techniques to capture nonlinearity including artificial neural networks (for Table 3 …”

Section: Discussionmentioning

confidence: 99%

Market efficiency and technical analysis during different market phases: further evidence from Malaysia

Nor

Wickremasinghe

2017

Investment Management and Financial Innovations

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The profitability of simple technical trading rules remains an interesting topic and has been thoroughly explored in the literature. In this paper, the authors investigate the profitability of two popular moving average (MA) rules in the Bursa Malaysia before, during and after the global financial crisis (GFC) of 2008-2009. Using variable length MA (VMA) and fixed length MA (FMA) technical rules, the authors explore if there were differences in their performance during the different market phases, and if swing traders can gain by trading on the basis of these strategies. When practical trading constraints are considered, the authors find that MA rules performed differently during the three market phases. Over time, the forecasting powers of these rules have diluted and they have performed poorly in the most recent subsample. The findings suggest that the Malaysian stock market is gradually becoming more efficient. This outcome can be attributed to the technological advancements and widespread use of exchange traded funds.

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“…Besides, this research solves the problems in case of ambiguity, in the indicators, for the traders. Chong, Ng, and Liew (2014) found that MACD with other technical analysis tools could generate an excess return from the Milan Comit General and the S&P/TSX Composite Index. They tested the returns for the total five leading stock markets of the world, namely, DAX 30, DJIA, Nikkei 225 with above mentioned two indices.…”

Section: Literature Reviewmentioning

confidence: 99%

Moving Average Convergence-Divergence (MACD) Trading Rule: An Application in Nepalese Stock Market "NEPSE"

Vaidya

2020

Quant. Econ. Manag. Stud.

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There are two types of analysis done for a stock market. One is fundamental analysis, where an investor looks at an intrinsic value of the stock, and another is technical analysis, where investors determine the future trend of the market looking at the current pattern or trend of the market. This paper is focused on one of the technical analysis tools, i.e., Moving Average Convergence-Divergence. It is a tool based on the three exponential moving average (9-12-26 EMA Rule). The MACD analysis, with the help of a single line, was helpful to find out the exact bullish and the bearish trend of the Nepse. A signal line is a benchmark to determine the stock market moving either to a bullish or bearish trend. It can help an investor, where the market is going in a direction. A market convergence, divergence, and crossover were better identified with the help of the MACD histogram. The paper found that the Nepse return was stable for a very minimal period from 1998-99 to 2019-20. The shift from the bullish to bearish or vice-verse were seen easily identified with the help of a MACD histogram. Finally, a better-combined knowledge of moving average and candlestick chart analysis will help an investor, to put a clear picture of a market trend with the help of MACD analysis.

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Revisiting the Performance of MACD and RSI Oscillators

Cited by 61 publications

References 21 publications

Analysis Relative Strength Index and Earning per Share on Stock Price (Survey on LQ 45 Companies for the 2014-2016 Period)

Analysis Relative Strength Index and Earning per Share on Stock Price (Survey on LQ 45 Companies for the 2014-2016 Period)

Market efficiency and technical analysis during different market phases: further evidence from Malaysia

Moving Average Convergence-Divergence (MACD) Trading Rule: An Application in Nepalese Stock Market "NEPSE"

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