Investigating effect of important indicators of technical analysis on short term investment of investors in Tehran Stock Exchange

Subject Areas : Financial Knowledge of Securities Analysis

رضا تهرانی ¹ , محمد اسماعیلی ²

1 - ندارد
2 - مسئول مکاتبات

Received: 2011-12-11 Accepted : 2012-04-11 Published : 2012-06-09

Keywords: investment, Return, Tehran Stock Exchange, Technical Analysis, Indicator&#x0D, &#x0D, 1- Associate,

Abstract :

Investment in stock exchange is one of investments to increase investors wealth.There are three various methods for investment of stock exchange: fundamentalanalysis, technical analysis and Buy & Hold strategy. In this research, effectiveness ofusing technical analysis in Tehran Stock Exchange researched by focus on severalimportant and applied indicators.Seven valid indicators in two type of technical analysis; trend and oscilators.This research is period of 4 years from beginning of 1380 to ending of 1383 s.br.including of both Bull period (beginning of 1380 to mid of 1382) and Bear period(mid of 1382 to end of 1383) and 62 of best companies aspect of the number oftrading days and with considering of trading costs.The results demonstrate that each of technical analysis indicators individually andcombination of trend technical analysis indicators compared with Buy & Hold strategycannot create high and abnormal return for their investors and chartists.But, combination of oscilator technical analysis indicators, specially relativestrength index and stochastics, can create high return relative to Buy & Hold strategysignificantly.