Study of Moving Averages Indicators Efficiency in Technical Analysis for Forecasting Stock Price in Selected Top Companies Tehran Stock Exchange

Subject Areas : Financial Knowledge of Securities Analysis

سید علی نبوی چاشمی ¹ , آیت الله حسن زاده ²

1 - مسئول مکاتبات
2 - ندارد

Received: 2011-04-12 Accepted : 2011-06-05 Published : 2011-06-22

Keywords: technical analysis ٫Moving ave, stock exchange,

Abstract :

The aim of the study is to answer the following question: which of the predictive indicators used in this study is the best way for predicting stock price, and is considered as the higher credibility for predicting stock price in the Tehran stock exchange? For this reason it is used the methods of a simple moving average and Weighted moving average and exponential moving average for symbol periods of 30 days, 60 days and 90 days. And then predicted results are compared with the actual price, and finally, various methods have been evaluated by two different indexes consist of Mean Absolute Deviation (MAD) and Tracer Symbol (TS).The results show that the exponential moving average methods for thirty-days period is entitled the highest credibility for predicting stock price