International Journal in Management and Social Science
  • Year: 2017
  • Volume: 5
  • Issue: 4

Analysis of the Technical Trading Rules

  • Author:
  • Savitha G. Lakkol1, A Meghana2
  • Total Page Count: 14
  • Page Number: 292 to 305

1Associate Professor, JSS Centre for Management Studies-JSS Science and Technology University, Mysuru

2Research Student, MBA, 2nd Year, JSS Centre for Management Studies-JSS Science and Technology University, Mysuru

Online published on 15 March, 2019.

Abstract

The debate over technical trading strategies has centered around the question of whether an actively managed portfolio, controlled by a technical indicator, can outperform a passively managed portfolio. Technical trading strategies help the investors to invest in the securities by studying the past trend of the stocks. The trends are based on the past performance of the stocks. The new investors who want to invest in the securities can make use of the technical trading strategies to get to know about the buy and sell signals. This study focuses on the technical trading strategies Simple moving average, Adaptive moving average, Bollinger's band and Commodity channel index to identify the buy and sell signals for Nifty 50. These strategies help the investors to build a profitable portfolio. The trading tools have indicated consistent results. Hence by this study it can be concluded that the investors can use Simple moving average, Adaptive moving average and Bollinger's band often to identify the buy and sell in any of the stocks of Nifty 50. Among all the strategies commodity channel index is not correlated with other strategies hence the investors can rely on other strategies.

Keywords

Adaptive moving average, Bollinger's band, Commodity channel index